In 2012 Kamal Nath was appointed CEO of Sify Technologies Limited (NASDAQ:SIFY). 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. This method should give us information to assess how appropriately the company pays the CEO.
How Does Kamal Nath's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Sify Technologies Limited has a market cap of US$196m, and reported total annual CEO compensation of ₹15m for the year to March 2019. While we always look at total compensation first, we note that the salary component is less, at ₹14m. When we examined a selection of companies with market caps ranging from ₹7.1b to ₹28b, we found the median CEO total compensation was ₹79m.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.
You can see, below, how CEO compensation at Sify Technologies has changed over time.
Is Sify Technologies Limited Growing?
On average over the last three years, Sify Technologies Limited has grown earnings per share (EPS) by 18% each year (using a line of best fit). In the last year, its revenue is up 5.6%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. It could be important to check this free visual depiction of what analysts expect for the future.
Has Sify Technologies Limited Been A Good Investment?
Most shareholders would probably be pleased with Sify Technologies Limited for providing a total return of 58% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
It appears that Sify Technologies Limited remunerates its CEO below most similar sized companies.
Many would consider this to indicate that the pay is modest since the business is growing. The pleasing shareholder returns are the cherry on top; you might even consider that Kamal Nath deserves a raise! Most shareholders like to see a modestly paid CEO combined with strong performance by the company. It would be even more positive if company insiders are buying shares. Shareholders may want to check for free if Sify Technologies insiders are buying or selling shares.
If you want to buy a stock that is better than Sify Technologies, this free list of high return, low debt companies is a great place to look.
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