Anil Kapoor became the CEO of Chambal Fertilisers and Chemicals Limited (NSE:CHAMBLFERT) in 2007. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. 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 Anil Kapoor’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Chambal Fertilisers and Chemicals Limited has a market cap of ₹59.3b, and is paying total annual CEO compensation of ₹47m. Notably, that’s an increase of 12% over the year before. We looked at a group of companies with market capitalizations from ₹29.0b to ₹116.1b, and the median CEO compensation was ₹27m.
It would therefore appear that Chambal Fertilisers and Chemicals Limited pays Anil Kapoor more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn’t mean the remuneration 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.
You can see, below, how CEO compensation at Chambal Fertilisers and Chemicals has changed over time.
Is Chambal Fertilisers and Chemicals Limited Growing?
Chambal Fertilisers and Chemicals Limited has increased its earnings per share (EPS) by an average of 13% a year, over the last three years Revenue was pretty flat on last year.
This demonstrates that the company has been improving recently. A good result. The lack of revenue growth isn’t ideal, but it is the bottom line that counts most in business. So this free visual report on analyst forecasts could hold they key to an excellent investment decision.
Has Chambal Fertilisers and Chemicals Limited Been A Good Investment?
I think that the total shareholder return of 174%, over three years, would leave most Chambal Fertilisers and Chemicals Limited shareholders smiling. So they may not be at all concerned if the CEO is paid more than is normal for companies around the same size.
We examined the amount Chambal Fertilisers and Chemicals 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.
However we must not forget that the EPS growth has been very strong over three years. On top of that, in the same period, returns to shareholders have been great. So, considering this good performance, the CEO compensation may be quite appropriate. Even if a company pays the CEO quite generously, that doesn’t mean it’s a bad investment. Nonetheless, it could be useful to double-check if insiders have sold shares recently.
If you would prefer check out another company — one with potentially superior financials — then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.