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In 2015 Shailesh Desai was appointed CEO of Shree Rama Multi-Tech Limited (NSE:SHREERAMA). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. 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.
View our latest analysis for Shree Rama Multi-Tech
How Does Shailesh Desai's Compensation Compare With Similar Sized Companies?
Our data indicates that Shree Rama Multi-Tech Limited is worth ₹289m, and total annual CEO compensation was reported as ₹6.6m for the year to March 2019. We note that's an increase of 12% above last year. Notably, the salary of ₹6.5m 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.
As you can see, Shailesh Desai is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Shree Rama Multi-Tech Limited is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see a visual representation of the CEO compensation at Shree Rama Multi-Tech, below.
Is Shree Rama Multi-Tech Limited Growing?
Shree Rama Multi-Tech Limited has increased its earnings per share (EPS) by an average of 46% a year, over the last three years (using a line of best fit). Its revenue is up 9.6% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. Although we don't have analyst forecasts you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Shree Rama Multi-Tech Limited Been A Good Investment?
With a three year total loss of 48%, Shree Rama Multi-Tech Limited would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
We compared the total CEO remuneration paid by Shree Rama Multi-Tech 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.
However, the earnings per share growth over three years is certainly impressive. Having said that, shareholders may be disappointed with the weak returns over the last three years. So shareholders might not feel great about the fact that CEO pay increased on last year. Considering the per share profit growth, but keeping in mind the weak returns, we'd need more time to form a view on CEO compensation. So you may want to check if insiders are buying Shree Rama Multi-Tech shares with their own money (free access).