U.S. markets closed
  • S&P Futures

    3,366.50
    -16.50 (-0.49%)
     
  • Dow Futures

    27,249.00
    -116.00 (-0.42%)
     
  • Nasdaq Futures

    11,533.75
    -54.25 (-0.47%)
     
  • Russell 2000 Futures

    1,576.70
    -12.30 (-0.77%)
     
  • Crude Oil

    38.86
    -0.71 (-1.79%)
     
  • Gold

    1,905.50
    -6.40 (-0.33%)
     
  • Silver

    24.37
    -0.20 (-0.81%)
     
  • EUR/USD

    1.1783
    -0.0007 (-0.06%)
     
  • 10-Yr Bond

    0.7780
    -0.0230 (-2.87%)
     
  • Vix

    33.35
    +0.89 (+2.74%)
     
  • GBP/USD

    1.3032
    -0.0009 (-0.07%)
     
  • USD/JPY

    104.4920
    -0.0020 (-0.00%)
     
  • BTC-USD

    13,688.30
    +68.74 (+0.50%)
     
  • CMC Crypto 200

    270.88
    +9.59 (+3.67%)
     
  • FTSE 100

    5,728.99
    -63.02 (-1.09%)
     
  • Nikkei 225

    23,390.49
    -95.31 (-0.41%)
     

Why WNS (Holdings) Limited's (NYSE:WNS) CEO Pay Matters To You

Simply Wall St

Want to participate in a research study? Help shape the future of investing tools and earn a $60 gift card!

In 2010 Keshav Murugesh was appointed CEO of WNS (Holdings) Limited (NYSE:WNS). 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.

See our latest analysis for WNS (Holdings)

How Does Keshav Murugesh's Compensation Compare With Similar Sized Companies?

Our data indicates that WNS (Holdings) Limited is worth US$2.7b, and total annual CEO compensation is US$3.3m. (This is based on the year to March 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$715k. When we examined a selection of companies with market caps ranging from US$2.0b to US$6.4b, we found the median CEO total compensation was US$4.9m.

Most shareholders would consider it a positive that Keshav Murugesh takes less total compensation than the CEOs of most similar size companies, leaving more 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 WNS (Holdings) has changed over time.

NYSE:WNS CEO Compensation, April 5th 2019
NYSE:WNS CEO Compensation, April 5th 2019

Is WNS (Holdings) Limited Growing?

WNS (Holdings) Limited has increased its earnings per share (EPS) by an average of 23% a year, over the last three years (using a line of best fit). Its revenue is up 12% over last year.

This demonstrates that the company has been improving recently. A good result. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. It could be important to check this free visual depiction of what analysts expect for the future.

Has WNS (Holdings) Limited Been A Good Investment?

I think that the total shareholder return of 69%, over three years, would leave most WNS (Holdings) Limited shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

WNS (Holdings) Limited is currently paying its CEO below what is normal for companies of its size. Many would consider this to indicate that the pay is modest since the business is growing. The strong history of shareholder returns might even have some thinking that Keshav Murugesh deserves a raise!

It's not often we see shareholders do so well, and yet the CEO is paid modestly. It would be even more positive if company insiders are buying shares. So you may want to check if insiders are buying WNS (Holdings) shares with their own money (free access).

Important note: WNS (Holdings) 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 editorial-team@simplywallst.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.