In This Article:
Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
In 2008 Shradha Marwah was appointed CEO of Subros Limited (NSE:SUBROS). 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. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
View our latest analysis for Subros
How Does Shradha Marwah's Compensation Compare With Similar Sized Companies?
According to our data, Subros Limited has a market capitalization of ₹16b, and pays its CEO total annual compensation worth ₹23m. (This figure is for the year to March 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at ₹20m. When we examined a selection of companies with market caps ranging from ₹7.0b to ₹28b, we found the median CEO total compensation was ₹17m.
As you can see, Shradha Marwah is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Subros Limited is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
The graphic below shows how CEO compensation at Subros has changed from year to year.
Is Subros Limited Growing?
Subros Limited has increased its earnings per share (EPS) by an average of 46% a year, over the last three years (using a line of best fit). Its revenue is up 11% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. 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 Subros Limited Been A Good Investment?
Boasting a total shareholder return of 180% over three years, Subros Limited has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
We compared total CEO remuneration at Subros Limited with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. Even better, returns to shareholders have been plentiful, over the same time period. As a result of this good performance, the CEO remuneration may well be quite reasonable. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Subros.