Is Coromandel International Limited (NSE:COROMANDEL) Overpaying Its CEO?

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Sameer Goel became the CEO of Coromandel International Limited (NSE:COROMANDEL) in 2015. 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 – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.

See our latest analysis for Coromandel International

How Does Sameer Goel’s Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Coromandel International Limited has a market cap of ₹129b, and is paying total annual CEO compensation of ₹41m. (This is based on the year to March 2018). We think total compensation is more important but we note that the CEO salary is lower, at ₹26m. We looked at a group of companies with market capitalizations from ₹71b to ₹227b, and the median CEO compensation was ₹38m.

So Sameer Goel receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.

You can see, below, how CEO compensation at Coromandel International has changed over time.

NSEI:COROMANDEL CEO Compensation, February 25th 2019
NSEI:COROMANDEL CEO Compensation, February 25th 2019

Is Coromandel International Limited Growing?

Over the last three years Coromandel International Limited has grown its earnings per share (EPS) by an average of 27% per year (using a line of best fit). In the last year, its revenue is up 19%.

This shows that the company has improved itself over the last few years. Good news for shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. It could be important to check this free visual depiction of what analysts expect for the future.

Has Coromandel International Limited Been A Good Investment?

Most shareholders would probably be pleased with Coromandel International Limited for providing a total return of 172% 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…

Sameer Goel is paid around the same as most CEOs of similar size companies.

The company is growing earnings per share and total shareholder returns have been pleasing. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Coromandel International.

If you want to buy a stock that is better than Coromandel International, this free list of high return, low debt companies is a great place to look.

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 editorial-team@simplywallst.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.