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Kamal Nath became the CEO of Sify Technologies Limited (NASDAQ:SIFY) in 2012. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Kamal Nath’s Compensation Compare With Similar Sized Companies?
According to our data, Sify Technologies Limited has a market capitalization of US$207m, and pays its CEO total annual compensation worth ₹15m. (This number is for the twelve months until March 2019). That’s less than last year. While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at ₹14m. We looked at a group of companies with market capitalizations from ₹7.0b to ₹28b, and the median CEO total compensation was ₹79m.
A first glance this seems like a real positive for shareholders, since Kamal Nath is paid less than the average total compensation paid by similar sized companies. While this is a good thing, you’ll need to understand the business better before you can form an opinion.
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 27% each year (using a line of best fit). Its revenue is up 4.2% over last year.
This demonstrates that the company has been improving recently. A good result. 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?
I think that the total shareholder return of 34%, over three years, would leave most Sify Technologies Limited shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
Sify Technologies Limited is currently paying its CEO below what is normal for companies of its size. Since the business is growing, many would argue this suggests the pay is modest. And given most shareholders are probably very happy with recent returns, you might even think that Kamal Nath deserves a raise!
Most shareholders like to see a modestly paid CEO combined with strong performance by the company. But it is even better if company insiders are also buying shares with their own money. Whatever your view on compensation, you might want to check if insiders are buying or selling Sify Technologies shares (free trial).
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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If you spot an error that warrants correction, please contact the editor at email@example.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.