Is Hindusthan National Glass & Industries Limited's (NSE:HINDNATGLS) CEO Pay Fair?

By
Simply Wall St
Published
October 16, 2018
NSEI:HINDNATGLS

Sanjay Somany became the CEO of Hindusthan National Glass & Industries Limited (NSE:HINDNATGLS) in 2005. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. 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 Hindusthan National Glass & Industries

How Does Sanjay Somany's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Hindusthan National Glass & Industries Limited has a market cap of ₹7.4b, and is paying total annual CEO compensation of ₹32m. That's a fairly small increase of 0.001% on year before. We looked at a group of companies with market capitalizations under ₹14.7b, and the median CEO compensation was ₹2m.

Thus we can conclude that Sanjay Somany receives more in total compensation than the median of a group of companies in the same market, and of similar size to Hindusthan National Glass & Industries Limited. However, this doesn't necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.

You can see a visual representation of the CEO compensation at Hindusthan National Glass & Industries, below.

NSEI:HINDNATGLS CEO Compensation October 16th 18
NSEI:HINDNATGLS CEO Compensation October 16th 18

Is Hindusthan National Glass & Industries Limited Growing?

Hindusthan National Glass & Industries Limited has reduced its earnings per share by an average of 4.7% a year, over the last three years. Its revenue is up 3.6% over last year.

Few shareholders would be pleased to read that earnings per share are lower over three years. The fairly low revenue growth fails to impress given that the earnings per share is down. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration.

We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Hindusthan National Glass & Industries Limited Been A Good Investment?

With a three year total loss of 12%, Hindusthan National Glass & Industries Limited would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

We the total CEO remuneration paid by Hindusthan National Glass & Industries Limited, and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.

Neither earnings per share nor revenue have been growing sufficiently fast to impress us, over the last three years.

Arguably worse, investors are without a positive return for the last three years. Some might well form the view that the CEO is paid too generously! CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Hindusthan National Glass & Industries Limited (free visualization of insider trades).

Or you might rather take a peek at this analytical visualization of historic cash flow, earnings and revenue.

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.

Promoted
If you're looking to trade Hindusthan National Glass & Industries, open an account with the lowest-cost* platform trusted by professionals, Interactive Brokers. Their clients from over 200 countries and territories trade stocks, options, futures, forex, bonds and funds worldwide from a single integrated account.

Simply Wall St has no position in any of the companies mentioned. This article 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. 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.
*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.


Simply Wall St character - Warren

Simply Wall St

Simply Wall St is a financial technology startup focused on providing unbiased, high-quality research coverage on every listed company in the world. Our research team consists of equity analysts with a public, market-beating track record. Learn more about the team behind Simply Wall St.