Anmol Jain has been the CEO of Lumax Auto Technologies Limited (NSE:LUMAXTECH) since 2013. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Anmol Jain's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Lumax Auto Technologies Limited has a market cap of ₹5.9b, and is paying total annual CEO compensation of ₹36m. (This number is for the twelve months until March 2019). We note that's an increase of 56% above last year. We think total compensation is more important but we note that the CEO salary is lower, at ₹11m. We examined a group of similar sized companies, with market capitalizations of below ₹14b. The median CEO total compensation in that group is ₹1.5m.
Thus we can conclude that Anmol Jain receives more in total compensation than the median of a group of companies in the same market, and of similar size to Lumax Auto Technologies Limited. However, this doesn't necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see a visual representation of the CEO compensation at Lumax Auto Technologies, below.
Is Lumax Auto Technologies Limited Growing?
Over the last three years Lumax Auto Technologies Limited has grown its earnings per share (EPS) by an average of 23% per year (using a line of best fit). It saw its revenue drop -1.2% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. You might want to check this free visual report on analyst forecasts for future earnings.
Has Lumax Auto Technologies Limited Been A Good Investment?
With a total shareholder return of 11% over three years, Lumax Auto Technologies Limited shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.
We compared total CEO remuneration at Lumax Auto Technologies Limited with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.
However we must not forget that the EPS growth has been very strong over three years. We also note that, over the same time frame, shareholder returns haven't been bad. So, considering the EPS growth we do not wish to criticize the level of CEO compensation, though we'd recommend further research on management. Shareholders may want to check for free if Lumax Auto Technologies insiders are buying or selling shares.
If you want to buy a stock that is better than Lumax Auto Technologies, this free list of high return, low debt companies is a great place to look.
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