In This Article:
Yoshifumi Iida has been the CEO of Honda Siel Power Products Limited (NSE:HONDAPOWER) since 2015. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we’ll consider growth that the business demonstrates. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for Honda Siel Power Products
How Does Yoshifumi Iida’s Compensation Compare With Similar Sized Companies?
Our data indicates that Honda Siel Power Products Limited is worth ₹11b, and total annual CEO compensation is ₹20m. (This is based on the year to 2018). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at ₹8.6m. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of ₹7.0b to ₹28b. The median total CEO compensation was ₹16m.
So Yoshifumi Iida receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.
The graphic below shows how CEO compensation at Honda Siel Power Products has changed from year to year.
Is Honda Siel Power Products Limited Growing?
On average over the last three years, Honda Siel Power Products Limited has grown earnings per share (EPS) by 8.4% each year. It achieved revenue growth of 7.4% over the last year.
I’d prefer higher revenue growth, but the modest improvement in EPS is good. Considering these factors I’d say performance has been pretty decent, though not amazing.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has Honda Siel Power Products Limited Been A Good Investment?
Given the total loss of 22% over three years, many shareholders in Honda Siel Power Products Limited are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary…
Yoshifumi Iida is paid around what is normal the leaders of comparable size companies.
The per share growth could be better, in our view. And we think the shareholder returns – over three years – have been underwhelming. So suffice it to say we don’t think the compensation is modest! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Honda Siel Power Products.