Rajiv Nair has been the CEO of Kaya Limited (NSE:KAYA) since 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. This process should give us an idea about how appropriately the CEO is paid.
How Does Rajiv Nair’s Compensation Compare With Similar Sized Companies?
According to our data, Kaya Limited has a market capitalization of ₹4.1b, and pays its CEO total annual compensation worth ₹14m. (This number is for the twelve months until March 2019). That’s below the compensation, last year. It is worth noting that the CEO compensation consists almost entirely of the salary, worth ₹14m. We looked at a group of companies with market capitalizations under ₹14b, and the median CEO total compensation was ₹1.5m.
As you can see, Rajiv Nair is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Kaya 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, below, how CEO compensation at Kaya has changed over time.
Is Kaya Limited Growing?
On average over the last three years, Kaya Limited has shrunk earnings per share by 47% each year (measured with a line of best fit). It achieved revenue growth of 3.5% over the last year.
Few shareholders would be pleased to read that earnings per share are lower over three years. The modest increase in revenue in the last year isn’t enough to make me overlook the disappointing change in earnings per share. These factors suggest that the business performance wouldn’t really justify a high pay packet for the CEO.
Has Kaya Limited Been A Good Investment?
Since shareholders would have lost about 56% over three years, some Kaya Limited shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
We compared total CEO remuneration at Kaya 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.Earnings per share have not grown in three years, and the revenue growth fails to impress us.
Just as bad, share price gains for investors have failed to materialize, over the same period. Some might well form the view that the CEO is paid too generously! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Kaya.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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