Yerramilli Srirama R. Rao became the CEO of Alkali Metals Limited (NSE:ALKALI) in 2004. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.

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See our latest analysis for Alkali Metals

How Does Yerramilli Srirama R. Rao's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Alkali Metals Limited has a market cap of ₹441m, and is paying total annual CEO compensation of ₹6.2m. (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 ₹5.0m. We looked at a group of companies with market capitalizations under ₹14b, and the median CEO total compensation was ₹1.3m.

It would therefore appear that Alkali Metals Limited pays Yerramilli Srirama R. Rao 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. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.

You can see, below, how CEO compensation at Alkali Metals has changed over time.

Is Alkali Metals Limited Growing?

Over the last three years Alkali Metals Limited has shrunk its earnings per share by an average of 21% per year (measured with a line of best fit). In the last year, its revenue is up 24%.

Unfortunately, earnings per share have trended lower over the last three years. There's no doubt that the silver lining is that revenue is up. But it isn't sufficiently fast growth to overlook the fact that earnings per share has gone backwards over three years. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Although we don't have analyst forecasts, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Alkali Metals Limited Been A Good Investment?

With a total shareholder return of 23% over three years, Alkali Metals Limited shareholders would, in general, be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.