Ashok Kumar Nedurumalli is the CEO of TeamLease Services Limited (NSE:TEAMLEASE). 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 Ashok Kumar Nedurumalli’s Compensation Compare With Similar Sized Companies?
Our data indicates that TeamLease Services Limited is worth ₹50b, and total annual CEO compensation is ₹9.9m. (This figure is for the year to March 2018). Notably, the salary of ₹9.9m is the vast majority of the CEO compensation. When we examined a selection of companies with market caps ranging from ₹28b to ₹110b, we found the median CEO total compensation was ₹25m.
Most shareholders would consider it a positive that Ashok Kumar Nedurumalli takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.
The graphic below shows how CEO compensation at TeamLease Services has changed from year to year.
Is TeamLease Services Limited Growing?
On average over the last three years, TeamLease Services Limited has grown earnings per share (EPS) by 42% each year (using a line of best fit). Its revenue is up 23% over last year.
This demonstrates that the company has been improving recently. A good result. It’s also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. It could be important to check this free visual depiction of what analysts expect for the future.
Has TeamLease Services Limited Been A Good Investment?
I think that the total shareholder return of 214%, over three years, would leave most TeamLease Services Limited shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
It appears that TeamLease Services Limited remunerates its CEO below most similar sized companies. Many would consider this to indicate that the pay is modest since the business is growing. The strong history of shareholder returns might even have some thinking that Ashok Kumar Nedurumalli 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. Shareholders may want to check for free if TeamLease Services insiders are buying or selling shares.
If you want to buy a stock that is better than TeamLease Services, this free list of high return, low debt companies is a great place to look.
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.
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.