Does S H Kelkar and Company Limited's (NSE:SHK) CEO Salary Compare Well With Others?

Kedar Vaze became the CEO of S H Kelkar and Company Limited (NSE:SHK) in 2014. 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 we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.

Check out our latest analysis for S H Kelkar

How Does Kedar Vaze's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that S H Kelkar and Company Limited has a market cap of ₹15b, and reported total annual CEO compensation of ₹17m for the year to March 2019. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at ₹13m. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of ₹7.2b to ₹29b. The median total CEO compensation was ₹22m.

That means Kedar Vaze receives fairly typical remuneration for the CEO of a company that size. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

You can see a visual representation of the CEO compensation at S H Kelkar, below.

Is S H Kelkar and Company Limited Growing?

Over the last three years S H Kelkar and Company Limited has shrunk its earnings per share by an average of 15% per year (measured with a line of best fit). In the last year, its revenue is up 4.6%.

Sadly for shareholders, earnings per share are actually down, over three years. The modest increase in revenue in the last year isn't enough to make me overlook the disappointing change in earnings per share. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Shareholders might be interested in this free visualization of analyst forecasts.

Has S H Kelkar and Company Limited Been A Good Investment?

Given the total loss of 63% over three years, many shareholders in S H Kelkar and Company Limited are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Kedar Vaze is paid around the same as most CEOs of similar size companies.

The company isn't growing EPS, and shareholder returns have been disappointing. Suffice it to say, we don't think the CEO is underpaid! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at S H Kelkar.

Important note: S H Kelkar 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.

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.

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