Keshav Murugesh has been the CEO of WNS (Holdings) Limited (NYSE:WNS) since 2010. 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. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Keshav Murugesh's Compensation Compare With Similar Sized Companies?
According to our data, WNS (Holdings) Limited has a market capitalization of US$3.1b, and paid its CEO total annual compensation worth US$2.8m over the year to March 2019. While we always look at total compensation first, we note that the salary component is less, at US$710k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. We examined companies with market caps from US$2.0b to US$6.4b, and discovered that the median CEO total compensation of that group was US$5.1m.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. Though positive, it's important we delve into the performance of the actual business.
You can see a visual representation of the CEO compensation at WNS (Holdings), below.
Is WNS (Holdings) Limited Growing?
WNS (Holdings) Limited has increased its earnings per share (EPS) by an average of 34% a year, over the last three years (using a line of best fit). It achieved revenue growth of 7.7% over the last year.
This demonstrates that the company has been improving recently. A good result. It's also good to see modest revenue growth, suggesting the underlying business is healthy. It could be important to check this free visual depiction of what analysts expect for the future.
Has WNS (Holdings) Limited Been A Good Investment?
Boasting a total shareholder return of 121% over three years, WNS (Holdings) Limited has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
WNS (Holdings) Limited is currently paying its CEO below what is normal for companies of its size.
Many would consider this to indicate that the pay is modest since the business is growing. And given most shareholders are probably very happy with recent returns, you might even think that Keshav Murugesh deserves a raise! It is relatively rare to see a modestly paid CEO when performance is so impressive. The cherry on top would be if company insiders are buying shares with their own money. Shareholders may want to check for free if WNS (Holdings) insiders are buying or selling shares.
Important note: WNS (Holdings) may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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