Santosh Varalwar is the CEO of Vivimed Labs Limited (NSE:VIVIMEDLAB). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. 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 Vivimed Labs
How Does Santosh Varalwar's Compensation Compare With Similar Sized Companies?
Our data indicates that Vivimed Labs Limited is worth ₹2.1b, and total annual CEO compensation is ₹6.0m. (This number is for the twelve months until March 2018). It is worth noting that the CEO compensation consists almost entirely of the salary, worth ₹6.0m. We took a group of companies with market capitalizations below ₹14b, and calculated the median CEO total compensation to be ₹1.2m.
It would therefore appear that Vivimed Labs Limited pays Santosh Varalwar 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 better assess whether the pay is overly generous by looking into the underlying business performance.
You can see, below, how CEO compensation at Vivimed Labs has changed over time.
Is Vivimed Labs Limited Growing?
On average over the last three years, Vivimed Labs Limited has shrunk earnings per share by 2.1% each year (measured with a line of best fit). It saw its revenue drop -6.3% over the last year.
Unfortunately there is a complete lack of earnings per share improvement, over three years. And the fact that revenue is down year on year arguably paints an ugly picture. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Although we don't have analyst forecasts, you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Vivimed Labs Limited Been A Good Investment?
Since shareholders would have lost about 72% over three years, some Vivimed Labs Limited shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
We compared the total CEO remuneration paid by Vivimed Labs Limited, and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
We think many shareholders would be underwhelmed with the business growth over the last three years.Just as bad, share price gains for investors have failed to materialize, over the same period. In our opinion the CEO might be paid too generously! So you may want to check if insiders are buying Vivimed Labs shares with their own money (free access).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this freelist of interesting companies.
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