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The CEO of Murudeshwar Ceramics Limited (NSE:MURUDCERA) is Satish Shetty. First, this article will compare CEO compensation with compensation at similar sized companies. 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.
How Does Satish Shetty’s Compensation Compare With Similar Sized Companies?
Our data indicates that Murudeshwar Ceramics Limited is worth ₹918m, and total annual CEO compensation is ₹6.0m. (This is based on the year to March 2018). While we always look at total compensation first, we note that the salary component is less, at ₹5.1m. We looked at a group of companies with market capitalizations under ₹14b, and the median CEO total compensation was ₹1.3m.
It would therefore appear that Murudeshwar Ceramics Limited pays Satish Shetty 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 Murudeshwar Ceramics has changed over time.
Is Murudeshwar Ceramics Limited Growing?
Over the last three years Murudeshwar Ceramics Limited has grown its earnings per share (EPS) by an average of 44% per year (using a line of best fit). It achieved revenue growth of 12% over the last year.
This demonstrates that the company has been improving recently. A good result. It’s a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. Although we don’t have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Murudeshwar Ceramics Limited Been A Good Investment?
Given the total loss of 10% over three years, many shareholders in Murudeshwar Ceramics Limited are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
We compared total CEO remuneration at Murudeshwar Ceramics Limited with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. On the other hand returns to investors over the same period have probably disappointed many. Considering the per share profit growth, but keeping in mind the weak returns, we’d need more time to form a view on CEO compensation. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Murudeshwar Ceramics.
Important note: Murudeshwar Ceramics may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE 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.