In This Article:
Lakshmi Agarwal is the CEO of Suryalakshmi Cotton Mills Limited (NSE:SURYALAXMI). 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 - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
Check out our latest analysis for Suryalakshmi Cotton Mills
How Does Lakshmi Agarwal's Compensation Compare With Similar Sized Companies?
Our data indicates that Suryalakshmi Cotton Mills Limited is worth ₹348m, and total annual CEO compensation was reported as ₹8.0m for the year to March 2019. That's a notable increase of 565% on last year. Notably, the salary of ₹8.0m is the vast majority of the CEO compensation. 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 Lakshmi Agarwal receives more in total compensation than the median of a group of companies in the same market, and of similar size to Suryalakshmi Cotton Mills 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 Suryalakshmi Cotton Mills has changed from year to year.
Is Suryalakshmi Cotton Mills Limited Growing?
On average over the last three years, Suryalakshmi Cotton Mills Limited has shrunk earnings per share by 105% each year (measured with a line of best fit). It saw its revenue drop 8.4% over the last year.
Unfortunately, earnings per share have trended lower over the last three years. And the fact that revenue is down year on year arguably paints an ugly picture. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Although we don't have analyst forecasts you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Suryalakshmi Cotton Mills Limited Been A Good Investment?
With a three year total loss of 84%, Suryalakshmi Cotton Mills Limited would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
We examined the amount Suryalakshmi Cotton Mills 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.