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Does Genus Power Infrastructures Limited's (NSE:GENUSPOWER) CEO Salary Compare Well With Others?

Simply Wall St

Rajendra Agarwal is the CEO of Genus Power Infrastructures Limited (NSE:GENUSPOWER). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.

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Check out our latest analysis for Genus Power Infrastructures

How Does Rajendra Agarwal's Compensation Compare With Similar Sized Companies?

According to our data, Genus Power Infrastructures Limited has a market capitalization of ₹7.0b, and pays its CEO total annual compensation worth ₹25m. (This number is for the twelve months until March 2018). It is worth noting that the CEO compensation consists almost entirely of the salary, worth ₹25m. We took a group of companies with market capitalizations below ₹14b, and calculated the median CEO total compensation to be ₹1.3m.

It would therefore appear that Genus Power Infrastructures Limited pays Rajendra Agarwal more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.

You can see a visual representation of the CEO compensation at Genus Power Infrastructures, below.

NSEI:GENUSPOWER CEO Compensation, May 23rd 2019

Is Genus Power Infrastructures Limited Growing?

Genus Power Infrastructures Limited has reduced its earnings per share by an average of 17% a year, over the last three years (measured with a line of best fit). In the last year, its revenue is up 26%.

As investors, we are a bit wary of companies that have lower earnings per share, over three years. On the other hand, the strong revenue growth suggests the business is growing. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. It could be important to check this free visual depiction of what analysts expect for the future.

Has Genus Power Infrastructures Limited Been A Good Investment?

Since shareholders would have lost about 48% over three years, some Genus Power Infrastructures Limited shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn't be too generous with CEO compensation.

In Summary...

We compared the total CEO remuneration paid by Genus Power Infrastructures Limited, and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.

Over the last three years, shareholder returns have been downright disappointing, and the underlying business has failed to impress us. Although we'd stop short of calling it inappropriate, we think the CEO compensation is probably more on the generous side of things. Shareholders may want to check for free if Genus Power Infrastructures insiders are buying or selling shares.

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 editorial-team@simplywallst.com. 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.