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Sanjay Math became the CEO of Finolex Industries Limited (NSE:FINOLEXIND) in 2016. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Sanjay Math's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Finolex Industries Limited has a market cap of ₹63b, and is paying total annual CEO compensation of ₹25m. (This is based on the year to March 2018). We think total compensation is more important but we note that the CEO salary is lower, at ₹11m. When we examined a selection of companies with market caps ranging from ₹28b to ₹111b, we found the median CEO total compensation was ₹24m.
That means Sanjay Math receives fairly typical remuneration for the CEO of a company that size. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
You can see a visual representation of the CEO compensation at Finolex Industries, below.
Is Finolex Industries Limited Growing?
On average over the last three years, Finolex Industries Limited has grown earnings per share (EPS) by 8.7% each year (using a line of best fit). Its revenue is up 13% over last year.
I think the revenue growth is good. And, while modest, the earnings per share growth is noticeable. Although we'll stop short of calling the stock a top performer, we think the company has potential. You might want to check this free visual report on analyst forecasts for future earnings.
Has Finolex Industries Limited Been A Good Investment?
Finolex Industries Limited has served shareholders reasonably well, with a total return of 29% over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
Remuneration for Sanjay Math is close enough to the median pay for a CEO of a similar sized company .
The company isn't showing particularly great growth, and shareholder turns haven't been particularly inspiring in the last few years. While the CEO may not be underpaid, we don't think the pay is too generous either. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Finolex Industries.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.