Vinodkumar Arora is the CEO of Aarvee Denims and Exports Limited (NSE:AARVEEDEN). First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.

View our latest analysis for Aarvee Denims and Exports

How Does Vinodkumar Arora's Compensation Compare With Similar Sized Companies?

According to our data, Aarvee Denims and Exports Limited has a market capitalization of ₹352m, and paid its CEO total annual compensation worth ₹3.6m over the year to March 2019. It is worth noting that the CEO compensation consists almost entirely of the salary, worth ₹3.6m. We looked at a group of companies with market capitalizations under ₹14b, and the median CEO total compensation was ₹2.4m.

It would therefore appear that Aarvee Denims and Exports Limited pays Vinodkumar Arora 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.

You can see a visual representation of the CEO compensation at Aarvee Denims and Exports, below.

Is Aarvee Denims and Exports Limited Growing?

On average over the last three years, Aarvee Denims and Exports Limited has shrunk earnings per share by 94% each year (measured with a line of best fit). In the last year, its revenue is down 14%.

Unfortunately, earnings per share have trended lower over the last three years. This is compounded by the fact revenue is actually down on last year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Aarvee Denims and Exports Limited Been A Good Investment?

Since shareholders would have lost about 84% over three years, some Aarvee Denims and Exports Limited shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

We examined the amount Aarvee Denims and Exports Limited pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.