Dasari Uday Reddy became the CEO of Tanla Solutions Limited (NSE:TANLA) in 1999. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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 method should give us information to assess how appropriately the company pays the CEO.
How Does Dasari Uday Reddy’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Tanla Solutions Limited has a market cap of ₹3.2b, and is paying total annual CEO compensation of ₹13m. (This number is for the twelve months until 2018). Notably, the salary of ₹13m is the vast majority of the CEO compensation. We looked at a group of companies with market capitalizations under ₹14b, and the median CEO compensation was ₹1.5m.
As you can see, Dasari Uday Reddy is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Tanla Solutions Limited is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see a visual representation of the CEO compensation at Tanla Solutions, below.
Is Tanla Solutions Limited Growing?
On average over the last three years, Tanla Solutions Limited has grown earnings per share (EPS) by 10% each year. Its revenue is up 11% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s also good to see decent revenue growth in the last year, suggesting the business is healthy and growing.
We don’t have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Tanla Solutions Limited Been A Good Investment?
Given the total loss of 36% over three years, many shareholders in Tanla Solutions Limited are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
We compared total CEO remuneration at Tanla Solutions Limited with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.
However, the earnings per share growth over three years is certainly impressive. However, the returns to investors are far less impressive, over the same period. Considering the per share profit growth, but keeping in mind the weak returns, we’d need more time to form a view on CEO compensation. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Tanla Solutions.
Or you might prefer gaze upon this detailed graph of past earnings, revenue and cash flow .
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.