In This Article:
Adit Gupta has been the CEO of AMD Industries Limited (NSE:AMDIND) since 2014. First, this article will compare CEO compensation with compensation at similar sized companies. 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.
See our latest analysis for AMD Industries
How Does Adit Gupta’s Compensation Compare With Similar Sized Companies?
According to our data, AMD Industries Limited has a market capitalization of ₹376m, and pays its CEO total annual compensation worth ₹12m. (This is based on the year to 2018). While we always look at total compensation first, we note that the salary component is less, at ₹7.2m. We examined a group of similar sized companies, with market capitalizations of below ₹14b. The median CEO compensation in that group is ₹1.5m.
As you can see, Adit 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 AMD Industries 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 a visual representation of the CEO compensation at AMD Industries, below.
Is AMD Industries Limited Growing?
On average over the last three years, AMD Industries Limited has shrunk earnings per share by 80% each year. Its revenue is up 2.9% over last year.
Unfortunately, earnings per share have trended lower over the last three years. And the modest revenue growth over 12 months isn’t much comfort against the reduced earnings per share. It’s hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration.
Although we don’t have analyst forecasts, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has AMD Industries Limited Been A Good Investment?
Given the total loss of 29% over three years, many shareholders in AMD Industries Limited are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary…
We compared the total CEO remuneration paid by AMD Industries Limited, and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.