Does Steel Authority of India Limited's (NSE:SAIL) CEO Salary Compare Well With Others?

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The CEO of Steel Authority of India Limited (NSE:SAIL) is Anil Chaudhary. 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. The aim of all this is to consider the appropriateness of CEO pay levels.

View our latest analysis for Steel Authority of India

How Does Anil Chaudhary's Compensation Compare With Similar Sized Companies?

Our data indicates that Steel Authority of India Limited is worth ₹192b, and total annual CEO compensation is ₹79m. (This figure is for the year to March 2018). We think total compensation is more important but we note that the CEO salary is lower, at ₹4.0m. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of ₹137b to ₹439b. The median total CEO compensation was ₹43m.

It would therefore appear that Steel Authority of India Limited pays Anil Chaudhary 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. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.

You can see a visual representation of the CEO compensation at Steel Authority of India, below.

Is Steel Authority of India Limited Growing?

On average over the last three years, Steel Authority of India Limited has grown earnings per share (EPS) by 92% each year (using a line of best fit). In the last year, its revenue is up 16%.

This demonstrates that the company has been improving recently. A good result. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business.

Has Steel Authority of India Limited Been A Good Investment?

With a three year total loss of 5.3%, Steel Authority of India Limited would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

We examined the amount Steel Authority of India Limited pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.

However, the earnings per share growth over three years is certainly impressive. Having said that, shareholders may be disappointed with the weak returns over the last three years. One might thus conclude that it would be better if the company waited until growth is reflected in the share price, before increasing CEO compensation. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Steel Authority of India.

Important note: Steel Authority of India 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.

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.