In This Article:
In 2004 Makrand Appalwar was appointed CEO of Emmbi Industries Limited (NSE:EMMBI). First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
See our latest analysis for Emmbi Industries
How Does Makrand Appalwar's Compensation Compare With Similar Sized Companies?
According to our data, Emmbi Industries Limited has a market capitalization of ₹2.3b, and paid its CEO total annual compensation worth ₹7.8m over the year to March 2019. It is worth noting that the CEO compensation consists almost entirely of the salary, worth ₹7.8m. We took a group of companies with market capitalizations below ₹14b, and calculated the median CEO total compensation to be ₹2.4m.
Thus we can conclude that Makrand Appalwar receives more in total compensation than the median of a group of companies in the same market, and of similar size to Emmbi Industries 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.
The graphic below shows how CEO compensation at Emmbi Industries has changed from year to year.
Is Emmbi Industries Limited Growing?
Emmbi Industries Limited has increased its earnings per share (EPS) by an average of 15% a year, over the last three years (using a line of best fit). Its revenue is up 12% over last year.
This demonstrates that the company has been improving recently. A good result. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. It could be important to check this free visual depiction of what analysts expect for the future.
Has Emmbi Industries Limited Been A Good Investment?
With a total shareholder return of 7.7% over three years, Emmbi Industries Limited has done okay by shareholders. But they would probably prefer not to see CEO compensation far in excess of the median.
In Summary...
We examined the amount Emmbi Industries Limited pays its CEO, and compared it to the amount paid by 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. We also note that, over the same time frame, shareholder returns haven't been bad. While it may be worth researching further, we don't see a problem with the CEO pay, given the good EPS growth. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Emmbi Industries.