In 2004 Shekhar Bajaj was appointed CEO of Bajaj Electricals Limited (NSE:BAJAJELEC). 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. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.

View our latest analysis for Bajaj Electricals

How Does Shekhar Bajaj’s Compensation Compare With Similar Sized Companies?

According to our data, Bajaj Electricals Limited has a market capitalization of ₹53b, and pays its CEO total annual compensation worth ₹95m. (This is based on the year to March 2018). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at ₹20m. We looked at a group of companies with market capitalizations from ₹28b to ₹110b, and the median CEO total compensation was ₹25m.

It would therefore appear that Bajaj Electricals Limited pays Shekhar Bajaj 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. 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 a visual representation of the CEO compensation at Bajaj Electricals, below.

Is Bajaj Electricals Limited Growing?

Bajaj Electricals Limited has increased its earnings per share (EPS) by an average of 49% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 10%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Shareholders might be interested in this free visualization of analyst forecasts.

Has Bajaj Electricals Limited Been A Good Investment?

Most shareholders would probably be pleased with Bajaj Electricals Limited for providing a total return of 162% over three years. 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 examined the amount Bajaj Electricals Limited pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.