How Much Does HIL's (NSE:HIL) CEO Make?

This article will reflect on the compensation paid to Dhirup Choudhary who has served as CEO of HIL Limited (NSE:HIL) since 2017. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for HIL.

See our latest analysis for HIL

How Does Total Compensation For Dhirup Choudhary Compare With Other Companies In The Industry?

At the time of writing, our data shows that HIL Limited has a market capitalization of ₹13b, and reported total annual CEO compensation of ₹41m for the year to March 2020. That's a notable increase of 13% on last year. It is worth noting that the CEO compensation consists entirely of the salary, worth ₹41m.

In comparison with other companies in the industry with market capitalizations ranging from ₹7.5b to ₹30b, the reported median CEO total compensation was ₹30m. This suggests that Dhirup Choudhary is paid more than the median for the industry. Moreover, Dhirup Choudhary also holds ₹25m worth of HIL stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Talking in terms of the industry, salary represented approximately 89% of total compensation out of all the companies we analyzed, while other remuneration made up 11% of the pie. At the company level, HIL pays Dhirup Choudhary solely through a salary, preferring to go down a conventional route. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

HIL Limited's Growth

Over the past three years, HIL Limited has seen its earnings per share (EPS) grow by 23% per year. Revenue was pretty flat on last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has HIL Limited Been A Good Investment?

We think that the total shareholder return of 44%, over three years, would leave most HIL 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...

HIL pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. As we touched on above, HIL Limited is currently paying its CEO higher than the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Importantly though, EPS growth and shareholder returns are very impressive over the last three years. So, in acknowledgment of the overall excellent performance, we believe CEO compensation is appropriate. Given the strong history of shareholder returns, the shareholders are probably very happy with Dhirup's performance.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We identified 3 warning signs for HIL (1 is concerning!) that you should be aware of before investing here.

Of course, you might find a fantastic investment by looking at a different set of stocks. 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.
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