In This Article:
Krishna Chigurupati became the CEO of Granules India Limited (NSE:GRANULES) in 2009. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. 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.
See our latest analysis for Granules India
How Does Krishna Chigurupati's Compensation Compare With Similar Sized Companies?
Our data indicates that Granules India Limited is worth ₹24b, and total annual CEO compensation is ₹150m. (This figure is for the year to March 2019). That's a notable increase of 34% on last year. While we always look at total compensation first, we note that the salary component is less, at ₹18m. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of ₹14b to ₹57b. The median total CEO compensation was ₹23m.
Thus we can conclude that Krishna Chigurupati receives more in total compensation than the median of a group of companies in the same market, and of similar size to Granules India Limited. However, this doesn't necessarily mean the pay 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 Granules India, below.
Is Granules India Limited Growing?
On average over the last three years, Granules India Limited has grown earnings per share (EPS) by 11% each year (using a line of best fit). It achieved revenue growth of 38% over the last year.
This demonstrates that the company has been improving recently. A good result. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Shareholders might be interested in this free visualization of analyst forecasts.
Has Granules India Limited Been A Good Investment?
Since shareholders would have lost about 28% over three years, some Granules India Limited shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
We compared total CEO remuneration at Granules India Limited with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.
However, the earnings per share growth over three years is certainly impressive. Having said that, shareholders may be disappointed with the weak returns over the last three years. This contrasts with the growth in CEO remuneration, in the last year. While EPS is positive, we'd say shareholders would want better returns before the CEO is paid much more. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Granules India (free visualization of insider trades).