The CEO of Varun Beverages Limited (NSE:VBL) is Kapil Agarwal. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
See our latest analysis for Varun Beverages
How Does Kapil Agarwal's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Varun Beverages Limited has a market cap of ₹233b, and reported total annual CEO compensation of ₹48m for the year to December 2018. It is worth noting that the CEO compensation consists almost entirely of the salary, worth ₹47m. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of ₹144b to ₹461b. The median total CEO compensation was ₹54m.
That means Kapil Agarwal receives fairly typical remuneration for the CEO of a company that size. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see, below, how CEO compensation at Varun Beverages has changed over time.
Is Varun Beverages Limited Growing?
On average over the last three years, Varun Beverages Limited has grown earnings per share (EPS) by 34% each year (using a line of best fit). Its revenue is up 40% over last year.
This demonstrates that the company has been improving recently. A good result. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. It could be important to check this free visual depiction of what analysts expect for the future.
Has Varun Beverages Limited Been A Good Investment?
Most shareholders would probably be pleased with Varun Beverages Limited for providing a total return of 215% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
In Summary...
Kapil Agarwal is paid around the same as most CEOs of similar size companies.
Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Varun Beverages (free visualization of insider trades).
If you want to buy a stock that is better than Varun Beverages, this free list of high return, low debt companies is a great place to look.
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