Is Oracle Financial Services Software Limited's (NSE:OFSS) CEO Overpaid Relative To Its Peers?

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Chet Kamat became the CEO of Oracle Financial Services Software Limited (NSE:OFSS) in 2010. 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 we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.

See our latest analysis for Oracle Financial Services Software

How Does Chet Kamat's Compensation Compare With Similar Sized Companies?

Our data indicates that Oracle Financial Services Software Limited is worth ₹311b, and total annual CEO compensation is ₹34m. (This number is for the twelve months until 2018). While we always look at total compensation first, we note that the salary component is less, at ₹32m. We examined companies with market caps from ₹143b to ₹457b, and discovered that the median CEO compensation of that group was ₹46m.

That means Chet Kamat receives fairly typical remuneration for the CEO of a company that size. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.

You can see, below, how CEO compensation at Oracle Financial Services Software has changed over time.

Is Oracle Financial Services Software Limited Growing?

On average over the last three years, Oracle Financial Services Software Limited has grown earnings per share (EPS) by 5.6% each year (using a line of best fit). Its revenue is up 7.0% over last year.

I'm not particularly impressed by the revenue growth, but the modest improvement in EPS is good. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. You might want to check this free visual report on analyst forecasts for future earnings.

Has Oracle Financial Services Software Limited Been A Good Investment?

Oracle Financial Services Software Limited has generated a total shareholder return of 25% over three years, so most shareholders would be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary...

Chet Kamat is paid around the same as most CEOs of similar size companies.

We think many would like to see better growth. While the CEO may not be underpaid, we don't think the pay is too generous either. Shareholders may want to check for free if Oracle Financial Services Software insiders are buying or selling shares.

Arguably, business quality is much more important than CEO compensation levels. So check out this freelist of interesting companies, that have HIGH return on equity and low debt.

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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. On rare occasion, data errors may occur. Thank you for reading.