Is Crompton Greaves Consumer Electricals Limited’s (NSE:CROMPTON) CEO Salary Justified?

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Mathew Job became the CEO of Crompton Greaves Consumer Electricals Limited (NSE:CROMPTON) in 2016. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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.

View our latest analysis for Crompton Greaves Consumer Electricals

How Does Mathew Job’s Compensation Compare With Similar Sized Companies?

According to our data, Crompton Greaves Consumer Electricals Limited has a market capitalization of ₹148b, and pays its CEO total annual compensation worth ₹52m. (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 ₹24m. When we examined a selection of companies with market caps ranging from ₹70b to ₹224b, we found the median CEO total compensation was ₹41m.

So Mathew Job receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.

You can see, below, how CEO compensation at Crompton Greaves Consumer Electricals has changed over time.

NSEI:CROMPTON CEO Compensation, May 31st 2019
NSEI:CROMPTON CEO Compensation, May 31st 2019

Is Crompton Greaves Consumer Electricals Limited Growing?

Over the last three years Crompton Greaves Consumer Electricals Limited has grown its earnings per share (EPS) by an average of 17% per year (using a line of best fit). In the last year, its revenue is up 9.8%.

This demonstrates that the company has been improving recently. A good result. It’s good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. It could be important to check this free visual depiction of what analysts expect for the future.

Has Crompton Greaves Consumer Electricals Limited Been A Good Investment?

I think that the total shareholder return of 73%, over three years, would leave most Crompton Greaves Consumer Electricals Limited shareholders smiling. This strong performance might mean some shareholders don’t mind if the CEO were to be paid more than is normal for a company of its size.

In Summary…

Remuneration for Mathew Job is close enough to the median pay for a CEO of a similar sized company .

Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. So one could argue the CEO compensation is quite modest, if you consider company performance! CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Crompton Greaves Consumer Electricals (free visualization of insider trades).

Important note: Crompton Greaves Consumer Electricals 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.

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 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. Thank you for reading.