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Is Hexaware Technologies Limited's (NSE:HEXAWARE) CEO Pay Justified?

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Simply Wall St
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Keech Srikrishna has been the CEO of Hexaware Technologies Limited (NSE:HEXAWARE) since 2014. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.

Check out our latest analysis for Hexaware Technologies

How Does Keech Srikrishna's Compensation Compare With Similar Sized Companies?

Our data indicates that Hexaware Technologies Limited is worth ₹113b, and total annual CEO compensation was reported as ₹57m for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at ₹4.7m. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. We examined companies with market caps from ₹71b to ₹227b, and discovered that the median CEO total compensation of that group was ₹44m.

So Keech Srikrishna receives a similar amount to the median CEO pay, amongst the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

The graphic below shows how CEO compensation at Hexaware Technologies has changed from year to year.

NSEI:HEXAWARE CEO Compensation, October 22nd 2019
NSEI:HEXAWARE CEO Compensation, October 22nd 2019

Is Hexaware Technologies Limited Growing?

Hexaware Technologies Limited has increased its earnings per share (EPS) by an average of 15% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 20%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Shareholders might be interested in this free visualization of analyst forecasts.

Has Hexaware Technologies Limited Been A Good Investment?

I think that the total shareholder return of 104%, over three years, would leave most Hexaware Technologies Limited shareholders smiling. 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.

In Summary...

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

Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. So you may want to check if insiders are buying Hexaware Technologies shares with their own money (free access).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.