How Should Investors Feel About Orient Green Power Company Limited's (NSE:GREENPOWER) CEO Pay?

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In 2013 Venkatachalam Ayyar was appointed CEO of Orient Green Power Company Limited (NSE:GREENPOWER). 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. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.

See our latest analysis for Orient Green Power

How Does Venkatachalam Ayyar's Compensation Compare With Similar Sized Companies?

According to our data, Orient Green Power Company Limited has a market capitalization of ₹3.7b, and pays its CEO total annual compensation worth ₹6.5m. (This is based on the year to 2018). It is worth noting that the CEO compensation consists almost entirely of the salary, worth ₹6.5m. We took a group of companies with market capitalizations below ₹14b, and calculated the median CEO compensation to be ₹1.5m.

It would therefore appear that Orient Green Power Company Limited pays Venkatachalam Ayyar 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. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.

The graphic below shows how CEO compensation at Orient Green Power has changed from year to year.

Is Orient Green Power Company Limited Growing?

On average over the last three years, Orient Green Power Company Limited has grown earnings per share (EPS) by 69% each year (using a line of best fit). It saw its revenue drop -19% over the last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. 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 Orient Green Power Company Limited Been A Good Investment?

Given the total loss of 64% over three years, many shareholders in Orient Green Power Company Limited are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.

In Summary...

We compared total CEO remuneration at Orient Green Power Company 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.

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. 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 Orient Green Power.

Or you might prefer examine intentlythis intuitive graph showing past 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 editorial-team@simplywallst.com.

Simply Wall St analyst Simply Wall St and Simply Wall St have no position in any of the companies mentioned. This article is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.