Does Jindal Saw Limited's (NSE:JINDALSAW) CEO Pay Reflect Performance?

Neeraj Kumar became the CEO of Jindal Saw Limited (NSE:JINDALSAW) in 2013. First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.

Check out our latest analysis for Jindal Saw

How Does Neeraj Kumar's Compensation Compare With Similar Sized Companies?

Our data indicates that Jindal Saw Limited is worth ₹22.6b, and total annual CEO compensation is ₹49m. We note that's an increase of 9.2% above last year. We looked at a group of companies with market capitalizations from ₹14.8b to ₹59.2b, and the median CEO compensation was ₹21m.

Thus we can conclude that Neeraj Kumar receives more in total compensation than the median of a group of companies in the same market, and of similar size to Jindal Saw Limited. However, this doesn't necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.

Is Jindal Saw Limited Growing?

Over the last three years Jindal Saw Limited has grown its earnings per share (EPS) by an average of 81% per year. It achieved revenue growth of 20% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business.

You might want to check this free visual report on analyst forecasts for future earnings.

Has Jindal Saw Limited Been A Good Investment?

Jindal Saw Limited has generated a total shareholder return of 9.5% over three years, so most shareholders wouldn't be too disappointed. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary...

We examined the amount Jindal Saw 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.

Importantly, though, the company has impressed with its earnings per share growth, over three years. We also note that, over the same time frame, shareholder returns haven't been bad. You might wish to research management further, but on this analysis, considering the EPS growth, we wouldn't call the CEO pay problematic. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Jindal Saw Limited.

Of course, the past can be informative so you might be interested in considering this analytical visualization showing the company history of 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.

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.