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In 2006 Satish Parakh was appointed CEO of Ashoka Buildcon Limited (NSE:ASHOKA). 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 process should give us an idea about how appropriately the CEO is paid.
Check out our latest analysis for Ashoka Buildcon
How Does Satish Parakh's Compensation Compare With Similar Sized Companies?
Our data indicates that Ashoka Buildcon Limited is worth ₹38b, and total annual CEO compensation is ₹42m. (This is based on the year to March 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at ₹31m. We looked at a group of companies with market capitalizations from ₹14b to ₹56b, and the median CEO total compensation was ₹23m.
It would therefore appear that Ashoka Buildcon Limited pays Satish Parakh 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, below, how CEO compensation at Ashoka Buildcon has changed over time.
Is Ashoka Buildcon Limited Growing?
Ashoka Buildcon Limited has increased its earnings per share (EPS) by an average of 23% a year, over the last three years (using a line of best fit). It achieved revenue growth of 37% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see. You might want to check this free visual report on analyst forecasts for future earnings.
Has Ashoka Buildcon Limited Been A Good Investment?
I think that the total shareholder return of 48%, over three years, would leave most Ashoka Buildcon Limited shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
We compared total CEO remuneration at Ashoka Buildcon 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.