Is Filatex India Limited’s (NSE:FILATEX) CEO Pay Fair?

Madhu Bhageria has been the CEO of Filatex India Limited (NSE:FILATEX) since 2008. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we’ll consider growth that the business demonstrates. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.

View our latest analysis for Filatex India

How Does Madhu Bhageria’s Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that Filatex India Limited has a market cap of ₹9.0b, and reported total annual CEO compensation of ₹13m for the year to March 2019. While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at ₹4.9m. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. We examined a group of similar sized companies, with market capitalizations of below ₹14b. The median CEO total compensation in that group is ₹3.5m.

As you can see, Madhu Bhageria is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Filatex India Limited is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.

You can see a visual representation of the CEO compensation at Filatex India, below.

NSEI:FILATEX CEO Compensation, January 18th 2020
NSEI:FILATEX CEO Compensation, January 18th 2020

Is Filatex India Limited Growing?

Over the last three years Filatex India Limited has grown its earnings per share (EPS) by an average of 28% per year (using a line of best fit). It achieved revenue growth of 49% over the last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast 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 Filatex India Limited Been A Good Investment?

Most shareholders would probably be pleased with Filatex India Limited for providing a total return of 186% 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 compared the total CEO remuneration paid by Filatex India Limited, and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.

Importantly, though, the company has impressed with its earnings per share growth, over three years. In addition, shareholders have done well over the same time period. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. Whatever your view on compensation, you might want to check if insiders are buying or selling Filatex India shares (free trial).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.

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