In This Article:
Bodanapu G. Krishna became the CEO of Cyient Limited (NSE:CYIENT) in 2014. First, this article will compare CEO compensation with compensation at similar sized companies. Then we’ll look at a snap shot of the business growth. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
See our latest analysis for Cyient
How Does Bodanapu G. Krishna’s Compensation Compare With Similar Sized Companies?
According to our data, Cyient Limited has a market capitalization of ₹71b, and pays its CEO total annual compensation worth ₹96m. Notably, that’s an increase of 53% over the year before. We examined companies with market caps from ₹29b to ₹114b, and discovered that the median CEO compensation of that group was ₹26m.
Thus we can conclude that Bodanapu G. Krishna receives more in total compensation than the median of a group of companies in the same market, and of similar size to Cyient 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.
You can see, below, how CEO compensation at Cyient has changed over time.
Is Cyient Limited Growing?
On average over the last three years, Cyient Limited has grown earnings per share (EPS) by 6.5% each year. In the last year, its revenue is up 16%.
This revenue growth could really point to a brighter future. And the modest growth in earnings per share isn’t bad, either. So while we’d stop just short of calling this a top performer, but we think it is well worth watching.
It could be important to check this free visual depiction of what analysts expect for the future.
Has Cyient Limited Been A Good Investment?
I think that the total shareholder return of 35%, over three years, would leave most Cyient Limited shareholders smiling. So they may not be at all concerned if the CEO is paid more than is normal for companies around the same size.
In Summary…
We compared total CEO remuneration at Cyient 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.
Over the last three years returns to investors have been great, though we might have liked stronger business growth. So, considering these tasty returns, the CEO compensation may be quite appropriate.
Or you could feast your eyes on this interactive graph depicting past earnings, cash flow and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.