Anuj Miglani has been the CEO of Uttam Galva Steels Limited (NSE:UTTAMSTL) since 2010. First, this article will compare CEO compensation with compensation at similar sized companies. 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.
View our latest analysis for Uttam Galva Steels
How Does Anuj Miglani's Compensation Compare With Similar Sized Companies?
Our data indicates that Uttam Galva Steels Limited is worth ₹908m, and total annual CEO compensation was reported as ₹12m for the year to March 2019. Notably, the salary of ₹11m is the vast majority of the CEO compensation. We looked at a group of companies with market capitalizations under ₹14b, and the median CEO total compensation was ₹3.6m.
Thus we can conclude that Anuj Miglani receives more in total compensation than the median of a group of companies in the same market, and of similar size to Uttam Galva Steels 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.
The graphic below shows how CEO compensation at Uttam Galva Steels has changed from year to year.
Is Uttam Galva Steels Limited Growing?
Over the last three years Uttam Galva Steels Limited has shrunk its earnings per share by an average of 37% per year (measured with a line of best fit). It saw its revenue drop 52% over the last year.
Sadly for shareholders, earnings per share are actually down, over three years. This is compounded by the fact revenue is actually down on last year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Uttam Galva Steels Limited Been A Good Investment?
With a three year total loss of 79%, Uttam Galva Steels 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 examined the amount Uttam Galva Steels Limited pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
We think many shareholders would be underwhelmed with the business growth over the last three years. Arguably worse, investors are without a positive return for the last three years. This analysis suggests to us that the CEO is paid too generously! So you may want to check if insiders are buying Uttam Galva Steels shares with their own money (free access).
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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