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Is ExlService Holdings, Inc.'s (NASDAQ:EXLS) CEO Being Overpaid?

Simply Wall St

Rohit Kapoor has been the CEO of ExlService Holdings, Inc. (NASDAQ:EXLS) since 2008. 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 process should give us an idea about how appropriately the CEO is paid.

See our latest analysis for ExlService Holdings

How Does Rohit Kapoor's Compensation Compare With Similar Sized Companies?

Our data indicates that ExlService Holdings, Inc. is worth US$2.2b, and total annual CEO compensation is US$5.1m. (This number is for the twelve months until December 2018). While we always look at total compensation first, we note that the salary component is less, at US$720k. We examined companies with market caps from US$1.0b to US$3.2b, and discovered that the median CEO total compensation of that group was US$4.0m.

That means Rohit Kapoor 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 ExlService Holdings, below.

NasdaqGS:EXLS CEO Compensation, August 6th 2019

Is ExlService Holdings, Inc. Growing?

ExlService Holdings, Inc. has reduced its earnings per share by an average of 12% a year, over the last three years (measured with a line of best fit). Its revenue is up 18% over last year.

Few shareholders would be pleased to read that earnings per share are lower over three years. While the revenue growth is good to see, it is outweighed by the fact that earnings per share are down, over three years. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. It could be important to check this free visual depiction of what analysts expect for the future.

Has ExlService Holdings, Inc. Been A Good Investment?

With a total shareholder return of 32% over three years, ExlService Holdings, Inc. shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

Remuneration for Rohit Kapoor is close enough to the median pay for a CEO of a similar sized company .

The company isn't growing earnings per share, and nor have the total returns inspired us. We do not think the CEO pay is a problem, but one might argue that the company should improve returns to shareholders before increasing it. Shareholders may want to check for free if ExlService Holdings insiders are buying or selling shares.

If you want to buy a stock that is better than ExlService Holdings, this free list of high return, low debt companies is a great place to look.

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.