In This Article:
Sunil Arora is the CEO of Aro Granite Industries Limited (NSE:AROGRANITE). 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. 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.
View our latest analysis for Aro Granite Industries
How Does Sunil Arora's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Aro Granite Industries Limited has a market cap of ₹711m, and is paying total annual CEO compensation of ₹17m. (This number is for the twelve months until March 2019). Notably, the salary of ₹16m is the vast majority of the CEO compensation. We looked at a group of companies with market capitalizations under ₹14b, and the median CEO total compensation was ₹2.4m.
Thus we can conclude that Sunil Arora receives more in total compensation than the median of a group of companies in the same market, and of similar size to Aro Granite Industries Limited. However, this doesn't necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see, below, how CEO compensation at Aro Granite Industries has changed over time.
Is Aro Granite Industries Limited Growing?
Aro Granite Industries Limited has reduced its earnings per share by an average of 21% a year, over the last three years (measured with a line of best fit). In the last year, its revenue is down -7.1%.
Few shareholders would be pleased to read that earnings per share are lower over three years. And the impression is worse when you consider revenue is down year-on-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 you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Aro Granite Industries Limited Been A Good Investment?
Given the total loss of 32% over three years, many shareholders in Aro Granite 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 total CEO remuneration at Aro Granite Industries Limited with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.