How Much Did Zicom Electronic Security Systems Limited's (NSE:ZICOM) CEO Pocket Last Year?
The CEO of Zicom Electronic Security Systems Limited (NSE:ZICOM) is Pramoud Rao. First, this article will compare CEO compensation with compensation at similar sized companies. 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.
Check out our latest analysis for Zicom Electronic Security Systems
How Does Pramoud Rao's Compensation Compare With Similar Sized Companies?
According to our data, Zicom Electronic Security Systems Limited has a market capitalization of ₹56m, and paid its CEO total annual compensation worth ₹5.4m over the year to March 2019. Notably, the salary of ₹5.3m is the vast majority of the CEO compensation. We took a group of companies with market capitalizations below ₹14b, and calculated the median CEO total compensation to be ₹3.6m.
Thus we can conclude that Pramoud Rao receives more in total compensation than the median of a group of companies in the same market, and of similar size to Zicom Electronic Security Systems Limited. However, this doesn't necessarily mean the pay is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see, below, how CEO compensation at Zicom Electronic Security Systems has changed over time.
Is Zicom Electronic Security Systems Limited Growing?
On average over the last three years, Zicom Electronic Security Systems Limited has grown earnings per share (EPS) by 18% each year (using a line of best fit). Its revenue is down 23% over last year.
This demonstrates that the company has been improving recently. A good result. Revenue growth is a real positive for growth, but ultimately profits are more important. 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 Zicom Electronic Security Systems Limited Been A Good Investment?
With a three year total loss of 96%, Zicom Electronic Security Systems Limited would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
We examined the amount Zicom Electronic Security Systems Limited pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. Having said that, shareholders may be disappointed with the weak returns over the last three years. While EPS is positive, we'd say shareholders would want better returns before the CEO is paid much more. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Zicom Electronic Security Systems (free visualization of insider trades).
If you want to buy a stock that is better than Zicom Electronic Security Systems, this free list of high return, low debt companies is a great place to look.
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