Anil Gupta became the CEO of Havells India Limited (NSE:HAVELLS) in 2014. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Anil Gupta’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Havells India Limited has a market cap of ₹387.5b, and is paying total annual CEO compensation of ₹169m. That’s a notable increase of 21% on last year. We looked at a group of companies with market capitalizations from ₹294.1b to ₹882.4b, and the median CEO compensation was ₹87m.
It would therefore appear that Havells India Limited pays Anil Gupta more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn’t mean the remuneration is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
The graphic below shows how CEO compensation at Havells India has changed from year to year.
Is Havells India Limited Growing?
Earnings per share at Havells India Limited are much the same as they were three years ago, albeit slightly lower. Its revenue is up 32% over last year.
The reduction in earnings per share, over three years, is arguably concerning. On the other hand, the strong revenue growth suggests the business is growing. In conclusion we can’t form a strong opinion about business performance yet; but it’s one worth watching. So this free report on the analyst consensus forecasts could help you make a master move on this stock.
Has Havells India Limited Been A Good Investment?
I think that the total shareholder return of 159%, over three years, would leave most Havells India Limited shareholders smiling. So they may not be at all concerned if the CEO is paid more than is normal for companies around the same size.
We examined the amount Havells India Limited pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
Over the last three years returns to investors have been great, though we might have liked stronger business growth. So, considering these tasty returns, the CEO compensation may be quite appropriate. Sometimes, highly paid CEOs create a lot of value for shareholders. Nonetheless, it could be useful to double-check if insiders have sold shares recently.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.