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In 1970 Bipin Manek was appointed CEO of Vidhi Specialty Food Ingredients Limited (NSE:VIDHIING). First, this article will compare CEO compensation with compensation at similar sized companies. 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 Bipin Manek's Compensation Compare With Similar Sized Companies?
According to our data, Vidhi Specialty Food Ingredients Limited has a market capitalization of ₹3.8b, and pays its CEO total annual compensation worth ₹12m. (This figure is for the year to March 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at ₹3.0m. We took a group of companies with market capitalizations below ₹14b, and calculated the median CEO total compensation to be ₹1.3m.
As you can see, Bipin Manek is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Vidhi Specialty Food Ingredients Limited is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see, below, how CEO compensation at Vidhi Specialty Food Ingredients has changed over time.
Is Vidhi Specialty Food Ingredients Limited Growing?
Vidhi Specialty Food Ingredients Limited has increased its earnings per share (EPS) by an average of 24% a year, over the last three years (using a line of best fit). Its revenue is up 7.4% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. You might want to check this free visual report on analyst forecasts for future earnings.
Has Vidhi Specialty Food Ingredients Limited Been A Good Investment?
I think that the total shareholder return of 47%, over three years, would leave most Vidhi Specialty Food Ingredients Limited shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
We compared the total CEO remuneration paid by Vidhi Specialty Food Ingredients Limited, and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
However, the earnings per share growth over three years is certainly impressive. In addition, shareholders have done well over the same time period. As a result of this good performance, the CEO remuneration may well be quite reasonable. Whatever your view on compensation, you might want to check if insiders are buying or selling Vidhi Specialty Food Ingredients shares (free trial).
If you want to buy a stock that is better than Vidhi Specialty Food Ingredients, 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 email@example.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.