Ashok Goel became the CEO of Essel Propack Limited (NSE:ESSELPRO) in 2013. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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.
View our latest analysis for Essel Propack
How Does Ashok Goel's Compensation Compare With Similar Sized Companies?
Our data indicates that Essel Propack Limited is worth ₹33b, and total annual CEO compensation is ₹64m. (This number is for the twelve months until 2018). While we always look at total compensation first, we note that the salary component is less, at ₹30m. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of ₹14b to ₹57b. The median total CEO compensation was ₹22m.
It would therefore appear that Essel Propack Limited pays Ashok Goel 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. We can get a better idea of how generous the pay is by looking at the performance of the underlying business. So this freereport on the analyst consensus forecasts could help you make a master move on this stock.
You can see, below, how CEO compensation at Essel Propack has changed over time.
Is Essel Propack Limited Growing?
Essel Propack Limited has reduced its earnings per share by an average of 1.3% a year, over the last three years. Its revenue is up 5.9% over last year.
The lack of earnings per share growth in the last three years is unimpressive. And the modest revenue growth over 12 months isn't much comfort against the reduced earnings per share. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO.
Has Essel Propack Limited Been A Good Investment?
Most shareholders would probably be pleased with Essel Propack Limited for providing a total return of 38% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
We examined the amount Essel Propack 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.
Earnings per share have not grown in three years, and the revenue growth fails to impress us.But clearly there are some positives, because investors have done well over the same time frame. Considering this, shareholders are probably not too worried about the CEO compensation. Shareholders may want to check for free if Essel Propack insiders are buying or selling shares.
Important note: Essel Propack may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE 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 editorial-team@simplywallst.com.
Simply Wall St analyst Simply Wall St and Simply Wall St have no position in any of the companies mentioned. This article is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.