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Umesh Saraf has been the CEO of Asian Hotels (East) Limited (NSE:AHLEAST) since 2010. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. 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 Asian Hotels (East)

How Does Umesh Saraf's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Asian Hotels (East) Limited has a market cap of ₹2.2b, and is paying total annual CEO compensation of ₹16m. (This number is for the twelve months until March 2018). While we always look at total compensation first, we note that the salary component is less, at ₹11m. We looked at a group of companies with market capitalizations under ₹14b, and the median CEO total compensation was ₹1.3m.

As you can see, Umesh Saraf is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Asian Hotels (East) Limited is paying too much. 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 Asian Hotels (East) has changed over time.

Is Asian Hotels (East) Limited Growing?

On average over the last three years, Asian Hotels (East) Limited has shrunk earnings per share by 23% each year (measured with a line of best fit). In the last year, its revenue is up 6.7%.

Sadly for shareholders, earnings per share are actually down, over three years. The modest increase in revenue in the last year isn't enough to make me overlook the disappointing change in earnings per share. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. 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 Asian Hotels (East) Limited Been A Good Investment?

Asian Hotels (East) Limited has not done too badly by shareholders, with a total return of 6.1%, over three years. But they would probably prefer not to see CEO compensation far in excess of the median.