Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
Sunil D’souza has been the CEO of Whirlpool of India Limited (NSE:WHIRLPOOL) since 2015. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Sunil D’souza’s Compensation Compare With Similar Sized Companies?
Our data indicates that Whirlpool of India Limited is worth ₹197b, and total annual CEO compensation is ₹81m. (This is based on the year to March 2018). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at ₹6.2m. We examined companies with market caps from ₹140b to ₹447b, and discovered that the median CEO total compensation of that group was ₹43m.
Thus we can conclude that Sunil D’souza receives more in total compensation than the median of a group of companies in the same market, and of similar size to Whirlpool of India Limited. However, this doesn’t necessarily mean the pay is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
The graphic below shows how CEO compensation at Whirlpool of India has changed from year to year.
Is Whirlpool of India Limited Growing?
Whirlpool of India Limited has increased its earnings per share (EPS) by an average of 15% a year, over the last three years (using a line of best fit). It achieved revenue growth of 12% over the 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. Shareholders might be interested in this free visualization of analyst forecasts.
Has Whirlpool of India Limited Been A Good Investment?
Most shareholders would probably be pleased with Whirlpool of India Limited for providing a total return of 94% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
We compared total CEO remuneration at Whirlpool of India Limited with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. Even better, returns to shareholders have been plentiful, over the same time period. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. So you may want to check if insiders are buying Whirlpool of India shares with their own money (free access).
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity 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 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.