In 2003 Anand Agarwal was appointed CEO of Sterlite Technologies Limited (NSE:STRTECH). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
See our latest analysis for Sterlite Technologies
How Does Anand Agarwal's Compensation Compare With Similar Sized Companies?
According to our data, Sterlite Technologies Limited has a market capitalization of ₹63b, and paid its CEO total annual compensation worth ₹124m over the year to March 2019. Notably, that's an increase of 23% over the year before. We think total compensation is more important but we note that the CEO salary is lower, at ₹96m. We examined companies with market caps from ₹28b to ₹114b, and discovered that the median CEO total compensation of that group was ₹27m.
As you can see, Anand Agarwal is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Sterlite Technologies 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 Sterlite Technologies has changed from year to year.
Is Sterlite Technologies Limited Growing?
Sterlite Technologies Limited has increased its earnings per share (EPS) by an average of 47% a year, over the last three years (using a line of best fit). Its revenue is up 69% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see. Shareholders might be interested in this free visualization of analyst forecasts.
Has Sterlite Technologies Limited Been A Good Investment?
Most shareholders would probably be pleased with Sterlite Technologies Limited for providing a total return of 124% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
In Summary...
We examined the amount Sterlite Technologies Limited pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.