Rohit Kapoor became the CEO of ExlService Holdings, Inc. (NASDAQ:EXLS) in 2008. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we’ll look at a snap shot of the business growth. 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 Rohit Kapoor’s Compensation Compare With Similar Sized Companies?
According to our data, ExlService Holdings, Inc. has a market capitalization of US$1.7b, and pays its CEO total annual compensation worth US$4.4m. (This number is for the twelve months until 2017). While we always look at total compensation first, we note that the salary component is less, at US$620k. We looked at a group of companies with market capitalizations from US$1.0b to US$3.2b, and the median CEO compensation was US$3.7m.
So Rohit Kapoor 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.
You can see, below, how CEO compensation at ExlService Holdings has changed over time.
Is ExlService Holdings, Inc. Growing?
Over the last three years ExlService Holdings, Inc. has shrunk its earnings per share by an average of 1.7% per year. It achieved revenue growth of 14% over the last year.
The lack of earnings per share growth in the last three years is unimpressive. While the revenue growth is good to see, it is outweighed by the fact that earnings per share are down, over three years. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO.
You might want to check this free visual report on analyst forecasts for future earnings.
Has ExlService Holdings, Inc. Been A Good Investment?
With a total shareholder return of 24% over three years, ExlService Holdings, Inc. shareholders would, in general, be reasonably content. But they probably don’t want to see the CEO paid more than is normal for companies around the same size.
Rohit Kapoor is paid around the same as most CEOs of similar size companies.
We feel that earnings per share have been a bit disappointing, but and we don’t think the total returns are amazing. We wouldn’t say the CEO pay is too high, but one might argue that the company should improve returns to shareholders before increasing it. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at ExlService Holdings.
Of course, the past can be informative so you might be interested in considering this analytical visualization showing the company history of earnings and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.