Vijay Biyani became the CEO of Future Enterprises Limited (NSE:FEL) in 2016. 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. The aim of all this is to consider the appropriateness of CEO pay levels.

Check out our latest analysis for Future Enterprises

How Does Vijay Biyani’s Compensation Compare With Similar Sized Companies?

According to our data, Future Enterprises Limited has a market capitalization of ₹21b, and pays its CEO total annual compensation worth ₹27m. (This figure is for the year to 2018). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at ₹24m. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of ₹7.1b to ₹28b. The median total CEO compensation was ₹16m.

It would therefore appear that Future Enterprises Limited pays Vijay Biyani 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. We can better assess whether the pay is overly generous by looking into the underlying business performance.

You can see a visual representation of the CEO compensation at Future Enterprises, below.

Is Future Enterprises Limited Growing?

On average over the last three years, Future Enterprises Limited has shrunk earnings per share by 91% each year. It achieved revenue growth of 14% over the last year.

Unfortunately, earnings per share have trended lower over the last three years. While the revenue growth is good to see, it is outweighed by the fact that earnings per share are down, over three years. These factors suggest that the business performance wouldn’t really justify a high pay packet for the CEO.

We don’t have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Future Enterprises Limited Been A Good Investment?

With a three year total loss of 73%, Future Enterprises Limited would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary…

We compared total CEO remuneration at Future Enterprises 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.