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.
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.
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.
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 firstname.lastname@example.org.
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