In This Article:
Dinesh Alla has been the CEO of Alphageo (India) Limited (NSE:ALPHAGEO) since 1991. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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 method should give us information to assess how appropriately the company pays the CEO.
Check out our latest analysis for Alphageo (India)
How Does Dinesh Alla's Compensation Compare With Similar Sized Companies?
According to our data, Alphageo (India) Limited has a market capitalization of ₹1.3b, and pays its CEO total annual compensation worth ₹48m. (This is based on the year to March 2018). While we always look at total compensation first, we note that the salary component is less, at ₹12m. We examined a group of similar sized companies, with market capitalizations of below ₹14b. The median CEO total compensation in that group is ₹1.5m.
Thus we can conclude that Dinesh Alla receives more in total compensation than the median of a group of companies in the same market, and of similar size to Alphageo (India) Limited. However, this doesn't necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
The graphic below shows how CEO compensation at Alphageo (India) has changed from year to year.
Is Alphageo (India) Limited Growing?
Alphageo (India) Limited has increased its earnings per share (EPS) by an average of 10% a year, over the last three years (using a line of best fit). In the last year, its revenue is down -8.2%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Alphageo (India) Limited Been A Good Investment?
Given the total loss of 76% over three years, many shareholders in Alphageo (India) 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 Alphageo (India) 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.