In 2012 Ashwani Arora was appointed CEO of LT Foods Limited (NSE:DAAWAT). First, this article will compare CEO compensation with compensation at similar sized companies. 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 process should give us an idea about how appropriately the CEO is paid.

Check out our latest analysis for LT Foods

How Does Ashwani Arora's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that LT Foods Limited has a market cap of ₹7.6b, and reported total annual CEO compensation of ₹21m for the year to March 2019. It is worth noting that the CEO compensation consists almost entirely of the salary, worth ₹21m. We took a group of companies with market capitalizations below ₹14b, and calculated the median CEO total compensation to be ₹1.8m.

It would therefore appear that LT Foods Limited pays Ashwani Arora 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 LT Foods, below.

Is LT Foods Limited Growing?

LT Foods Limited has increased its earnings per share (EPS) by an average of 9.0% a year, over the last three years (using a line of best fit). It achieved revenue growth of 8.9% over the last year.

I'm not particularly impressed by the revenue growth, but it is good to see modest EPS growth. So there are some positives here, but not enough to earn high praise. Shareholders might be interested in this free visualization of analyst forecasts.

Has LT Foods Limited Been A Good Investment?

With a three year total loss of 9.6%, LT Foods Limited would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.

In Summary...

We examined the amount LT Foods Limited pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.

The growth in the business has been uninspiring, but the shareholder returns have arguably been worse, over the last three years. Although we'd stop short of calling it inappropriate, we think the CEO compensation is probably more on the generous side of things. Shareholders may want to check for free if LT Foods insiders are buying or selling shares.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.

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If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.