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Srivats Ram became the CEO of Wheels India Limited (NSE:WHEELS) in 2013. 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. The aim of all this is to consider the appropriateness of CEO pay levels.

View our latest analysis for Wheels India

How Does Srivats Ram's Compensation Compare With Similar Sized Companies?

According to our data, Wheels India Limited has a market capitalization of ₹19b, and pays its CEO total annual compensation worth ₹30m. (This figure is for the year to March 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at ₹9.6m. When we examined a selection of companies with market caps ranging from ₹6.9b to ₹28b, we found the median CEO total compensation was ₹17m.

Thus we can conclude that Srivats Ram receives more in total compensation than the median of a group of companies in the same market, and of similar size to Wheels India 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 a visual representation of the CEO compensation at Wheels India, below.

Is Wheels India Limited Growing?

On average over the last three years, Wheels India Limited has grown earnings per share (EPS) by 19% each year (using a line of best fit). It achieved revenue growth of 34% over the last year.

This demonstrates that the company has been improving recently. A good result. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. It could be important to check this free visual depiction of what analysts expect for the future.

Has Wheels India Limited Been A Good Investment?

I think that the total shareholder return of 35%, over three years, would leave most Wheels India Limited shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

We compared total CEO remuneration at Wheels India 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.