In 2011 Satyen Mamtora was appointed CEO of Transformers & Rectifiers (India) Limited (NSE:TRIL). 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 process should give us an idea about how appropriately the CEO is paid.

See our latest analysis for Transformers & Rectifiers (India)

How Does Satyen Mamtora's Compensation Compare With Similar Sized Companies?

According to our data, Transformers & Rectifiers (India) Limited has a market capitalization of ₹1.2b, and pays its CEO total annual compensation worth ₹4.5m. (This is based on the year to March 2018). It is worth noting that the CEO compensation consists almost entirely of the salary, worth ₹4.5m. We examined a group of similar sized companies, with market capitalizations of below ₹14b. The median CEO total compensation in that group is ₹1.4m.

Thus we can conclude that Satyen Mamtora receives more in total compensation than the median of a group of companies in the same market, and of similar size to Transformers & Rectifiers (India) Limited. However, this doesn't necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.

The graphic below shows how CEO compensation at Transformers & Rectifiers (India) has changed from year to year.

Is Transformers & Rectifiers (India) Limited Growing?

On average over the last three years, Transformers & Rectifiers (India) Limited has grown earnings per share (EPS) by 18% each year (using a line of best fit). In the last year, its revenue is up 20%.

This shows that the company has improved itself over the last few years. Good news for shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Transformers & Rectifiers (India) Limited Been A Good Investment?

With a three year total loss of 71%, Transformers & Rectifiers (India) Limited would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

We examined the amount Transformers & Rectifiers (India) 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.