How Much Did Ruchira Papers Limited's (NSE:RUCHIRA) CEO Pocket Last Year?

Umesh Garg has been the CEO of Ruchira Papers Limited (NSE:RUCHIRA) since 1983. 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. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.

See our latest analysis for Ruchira Papers

How Does Umesh Garg's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that Ruchira Papers Limited has a market cap of ₹1.1b, and reported total annual CEO compensation of ₹23m for the year to March 2019. It is worth noting that the CEO compensation consists almost entirely of the salary, worth ₹23m. We looked at a group of companies with market capitalizations under ₹15b, and the median CEO total compensation was ₹3.8m.

Now let's take a look at the pay mix on an industry and company level to gain a better understanding of where Ruchira Papers stands. On a sector level, around 88% of total compensation represents salary and 12% is other remuneration. Speaking on a company level, Ruchira Papers prefers to tread along a traditional path, disbursing all compensation through a salary.

As you can see, Umesh Garg is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Ruchira Papers 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 Ruchira Papers has changed over time.

Is Ruchira Papers Limited Growing?

Over the last three years Ruchira Papers Limited has seen earnings per share (EPS) move in a positive direction by an average of 5.5% per year (using a line of best fit). In the last year, its revenue is up 6.3%.

I would argue that the improvement in revenue isn't particularly impressive, but the modest improvement in EPS is good. So there are some positives here, but not enough to earn high praise. Although we don't have analyst forecasts shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Ruchira Papers Limited Been A Good Investment?

Since shareholders would have lost about 71% over three years, some Ruchira Papers Limited shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

We examined the amount Ruchira Papers Limited pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.

Over the last three years, shareholder returns have been downright disappointing, and the underlying business has failed to impress us. Considering this, we have the opinion that the CEO pay is more on the generous side, than the modest side. On another note, we've spotted 3 warning signs for Ruchira Papers that investors should look into moving forward.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Thank you for reading.