The CEO of Creative Eye Limited (NSE:CREATIVEYE) is Dheeraj Kochhar. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we’ll consider growth that the business demonstrates. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Dheeraj Kochhar’s Compensation Compare With Similar Sized Companies?
Our data indicates that Creative Eye Limited is worth ₹27m, and total annual CEO compensation was reported as ₹4.3m for the year to March 2018. While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at ₹4.1m. We examined a group of similar sized companies, with market capitalizations of below ₹14b. The median CEO total compensation in that group is ₹2.4m.
It would therefore appear that Creative Eye Limited pays Dheeraj Kochhar 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. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see a visual representation of the CEO compensation at Creative Eye, below.
Is Creative Eye Limited Growing?
Creative Eye Limited has reduced its earnings per share by an average of 59% a year, over the last three years (measured with a line of best fit). It achieved revenue growth of 182% over the last year.
As investors, we are a bit wary of companies that have lower earnings per share, over three years. But in contrast the revenue growth is strong, suggesting future potential for earnings growth. It’s hard to reach a conclusion about business performance right now. This may be one to watch.
Has Creative Eye Limited Been A Good Investment?
With a three year total loss of 64%, Creative Eye Limited would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
We examined the amount Creative Eye 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.
While we have not been overly impressed by the business performance, the shareholder returns, over three years, have been disappointing. Considering this, we have the opinion that the CEO pay is more on the generous side, than the modest side. Whatever your view on compensation, you might want to check if insiders are buying or selling Creative Eye shares (free trial).
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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