Vijay Biyani became the CEO of Future Enterprises Limited (NSE:FELDVR) 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. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Vijay Biyani’s Compensation Compare With Similar Sized Companies?
Our data indicates that Future Enterprises Limited is worth ₹13b, and total annual CEO compensation is ₹32m. (This is based on the year to March 2019). We note that’s an increase of 19% above last year. While we always look at total compensation first, we note that the salary component is less, at ₹29m. We looked at a group of companies with market capitalizations from ₹6.9b to ₹28b, and the median CEO total compensation was ₹19m.
It would therefore appear that Future Enterprises Limited pays Vijay Biyani 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 a visual representation of the CEO compensation at Future Enterprises, below.
Is Future Enterprises Limited Growing?
Future Enterprises Limited has increased its earnings per share (EPS) by an average of 50% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 17%.
This shows that the company has improved itself over the last few years. Good news for shareholders. It’s also good to see decent revenue growth in the last year, suggesting the business is healthy and growing.
Has Future Enterprises Limited Been A Good Investment?
Future Enterprises Limited has generated a total shareholder return of 24% over three years, so most shareholders would be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.
We compared total CEO remuneration at Future Enterprises 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. Looking at the same time period, we think that the shareholder returns are respectable. While it may be worth researching further, we don’t see a problem with the CEO pay, given the good EPS growth. Shareholders may want to check for free if Future Enterprises insiders are buying or selling shares.
Important note: Future Enterprises 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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