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Y. Reddy became the CEO of Country Club Hospitality & Holidays Limited (NSE:CCHHL) in 2006. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
See our latest analysis for Country Club Hospitality & Holidays
How Does Y. Reddy's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Country Club Hospitality & Holidays Limited has a market cap of ₹1.1b, and is paying total annual CEO compensation of ₹3.6m. (This number is for the twelve months until March 2018). It is worth noting that the CEO compensation consists almost entirely of the salary, worth ₹3.6m. We examined a group of similar sized companies, with market capitalizations of below ₹14b. The median CEO total compensation in that group is ₹1.3m.
Thus we can conclude that Y. Reddy receives more in total compensation than the median of a group of companies in the same market, and of similar size to Country Club Hospitality & Holidays Limited. However, this doesn't necessarily mean the pay 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 Country Club Hospitality & Holidays, below.
Is Country Club Hospitality & Holidays Limited Growing?
Over the last three years Country Club Hospitality & Holidays Limited has shrunk its earnings per share by an average of 95% per year (measured with a line of best fit). Its revenue is down -20% over last year.
Few shareholders would be pleased to read that earnings per share are lower over three years. And the fact that revenue is down year on year arguably paints an ugly picture. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Country Club Hospitality & Holidays Limited Been A Good Investment?
Given the total loss of 50% over three years, many shareholders in Country Club Hospitality & Holidays Limited are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.