Should You Worry About Nahar Industrial Enterprises Limited's (NSE:NAHARINDUS) CEO Salary Level?

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Kamal Oswal has been the CEO of Nahar Industrial Enterprises Limited (NSE:NAHARINDUS) since 2013. 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. 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 Nahar Industrial Enterprises

How Does Kamal Oswal's Compensation Compare With Similar Sized Companies?

Our data indicates that Nahar Industrial Enterprises Limited is worth ₹1.5b, and total annual CEO compensation is ₹26m. (This number is for the twelve months until March 2018). It is worth noting that the CEO compensation consists almost entirely of the salary, worth ₹26m. We took a group of companies with market capitalizations below ₹14b, and calculated the median CEO total compensation to be ₹1.3m.

As you can see, Kamal Oswal is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Nahar Industrial Enterprises Limited is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.

The graphic below shows how CEO compensation at Nahar Industrial Enterprises has changed from year to year.

Is Nahar Industrial Enterprises Limited Growing?

Nahar Industrial Enterprises Limited has reduced its earnings per share by an average of 64% a year, over the last three years (measured with a line of best fit). In the last year, its revenue is up 6.1%.

Unfortunately, earnings per share have trended lower over the last three years. And the modest revenue growth over 12 months isn't much comfort against the reduced earnings per share. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Although we don't have analyst forecasts, you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Nahar Industrial Enterprises Limited Been A Good Investment?

Given the total loss of 60% over three years, many shareholders in Nahar Industrial Enterprises Limited are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

We examined the amount Nahar Industrial Enterprises Limited pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.

We think many shareholders would be underwhelmed with the business growth over the last three years.

Just as bad, share price gains for investors have failed to materialize, over the same period. This analysis suggests to us that the CEO is paid too generously! CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Nahar Industrial Enterprises (free visualization of insider trades).

If you want to buy a stock that is better than Nahar Industrial Enterprises, 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 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.