Promod Gupta became the CEO of PG Electroplast Limited (NSE:PGEL) in 2010. 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. 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.
How Does Promod Gupta’s Compensation Compare With Similar Sized Companies?
According to our data, PG Electroplast Limited has a market capitalization of ₹1.7b, and pays its CEO total annual compensation worth ₹7m. We note that’s an increase of 33% above last year. We examined a group of similar sized companies, with market capitalizations of below ₹14.5b. The median CEO compensation in that group is ₹2m.
As you can see, Promod Gupta is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean PG Electroplast 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, below, how CEO compensation at PG Electroplast has changed over time.
Is PG Electroplast Limited Growing?
PG Electroplast Limited has increased its earnings per share (EPS) by an average of 73% a year, over the last three years It achieved revenue growth of 6.6% over the last year.
This demonstrates that the company has been improving recently. A good result. It’s also good to see modest revenue growth, suggesting the underlying business is healthy.
We don’t have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has PG Electroplast Limited Been A Good Investment?
Given the total loss of 20% over three years, many shareholders in PG Electroplast 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 PG Electroplast Limited with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.
However, the earnings per share growth over three years is certainly impressive. Having said that, shareholders may be disappointed with the weak returns over the last three years. This contrasts with the growth in CEO remuneration, in the last year. While EPS is positive, we’d say shareholders would want better returns before the CEO is paid much more. Whatever your view on compensation, you might want to check if insiders are buying or selling PG Electroplast Limited shares (free trial).
Or you might rather take a peek at this analytical visualization of historic cash flow, earnings and revenue.
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.