How Should Investors Feel About JMC Projects (India) Limited's (NSE:JMCPROJECT) CEO Pay?

Shailendra Tripathi became the CEO of JMC Projects (India) Limited (NSE:JMCPROJECT) in 2013. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. 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.

View our latest analysis for JMC Projects (India)

How Does Shailendra Tripathi's Compensation Compare With Similar Sized Companies?

According to our data, JMC Projects (India) Limited has a market capitalization of ₹15b, and paid its CEO total annual compensation worth ₹36m over the year to March 2019. We think total compensation is more important but we note that the CEO salary is lower, at ₹18m. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of ₹7.2b to ₹29b. The median total CEO compensation was ₹21m.

It would therefore appear that JMC Projects (India) Limited pays Shailendra Tripathi 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 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 JMC Projects (India) has changed over time.

Is JMC Projects (India) Limited Growing?

Over the last three years JMC Projects (India) Limited has grown its earnings per share (EPS) by an average of 73% per year (using a line of best fit). It achieved revenue growth of 18% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has JMC Projects (India) Limited Been A Good Investment?

Most shareholders would probably be pleased with JMC Projects (India) Limited for providing a total return of 91% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

We examined the amount JMC Projects (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.

However, the earnings per share growth over three years is certainly impressive. Even better, returns to shareholders have been plentiful, over the same time period. So, considering this good performance, the CEO compensation may be quite appropriate. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at JMC Projects (India).

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.

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.

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. Thank you for reading.