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The CEO of Edelweiss Financial Services Limited (NSE:EDELWEISS) is Rashesh Shah. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we’ll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Rashesh Shah’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Edelweiss Financial Services Limited has a market cap of ₹149b, and is paying total annual CEO compensation of ₹64m. (This figure is for the year to March 2018). We think total compensation is more important but we note that the CEO salary is lower, at ₹12m. We looked at a group of companies with market capitalizations from ₹70b to ₹223b, and the median CEO total compensation was ₹38m.
As you can see, Rashesh Shah is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Edelweiss Financial Services Limited is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see, below, how CEO compensation at Edelweiss Financial Services has changed over time.
Is Edelweiss Financial Services Limited Growing?
On average over the last three years, Edelweiss Financial Services Limited has grown earnings per share (EPS) by 30% each year (using a line of best fit). It achieved revenue growth of 26% over the last year.
This demonstrates that the company has been improving recently. A good result. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see. It could be important to check this free visual depiction of what analysts expect for the future.
Has Edelweiss Financial Services Limited Been A Good Investment?
Boasting a total shareholder return of 162% over three years, Edelweiss Financial Services Limited has done well by shareholders. This strong performance might mean some shareholders don’t mind if the CEO were to be paid more than is normal for a company of its size.
We examined the amount Edelweiss Financial Services Limited pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
However, the earnings per share growth over three years is certainly impressive. Even better, returns to shareholders have been plentiful, over the same time period. So, considering this good performance, the CEO compensation may be quite appropriate. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Edelweiss Financial Services (free visualization of insider trades).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.