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The CEO of Venus Remedies Limited (NSE:VENUSREM) is Pawan Chaudhary. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. 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 Pawan Chaudhary's Compensation Compare With Similar Sized Companies?
Our data indicates that Venus Remedies Limited is worth ₹314m, and total annual CEO compensation is ₹6.4m. (This is based on the year to March 2018). Notably, the salary of ₹6.3m is the vast majority of the CEO compensation. We looked at a group of companies with market capitalizations under ₹14b, and the median CEO total compensation was ₹1.3m.
It would therefore appear that Venus Remedies Limited pays Pawan Chaudhary 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, below, how CEO compensation at Venus Remedies has changed over time.
Is Venus Remedies Limited Growing?
On average over the last three years, Venus Remedies Limited has shrunk earnings per share by 52% each year (measured with a line of best fit). In the last year, its revenue is down -14%.
Few shareholders would be pleased to read that earnings per share are lower over three years. And the fact that revenue is down year on year arguably paints an ugly picture. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Although we don't have analyst forecasts, you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Venus Remedies Limited Been A Good Investment?
Since shareholders would have lost about 68% over three years, some Venus Remedies Limited shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
We compared total CEO remuneration at Venus Remedies Limited with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.
We think many shareholders would be underwhelmed with the business growth over the last three years.
Just as bad, share price gains for investors have failed to materialize, over the same period. This analysis suggests to us that the CEO is paid too generously! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Venus Remedies.
Important note: Venus Remedies 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.
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.