In This Article:
In 2008 P. Choudhary was appointed CEO of Hindustan Composites Limited (NSE:HINDCOMPOS). 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. 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 Hindustan Composites
How Does P. Choudhary’s Compensation Compare With Similar Sized Companies?
According to our data, Hindustan Composites Limited has a market capitalization of ₹4.6b, and pays its CEO total annual compensation worth ₹7.9m. (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 ₹6.5m. We took a group of companies with market capitalizations below ₹14b, and calculated the median CEO compensation to be ₹1.5m.
It would therefore appear that Hindustan Composites Limited pays P. Choudhary 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, below, how CEO compensation at Hindustan Composites has changed over time.
Is Hindustan Composites Limited Growing?
On average over the last three years, Hindustan Composites Limited has shrunk earnings per share by 5.7% each year. Its revenue is up 20% over last year.
Sadly for shareholders, earnings per share are actually down, over 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. It’s hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Hindustan Composites Limited Been A Good Investment?
Since shareholders would have lost about 19% over three years, some Hindustan Composites 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 the total CEO remuneration paid by Hindustan Composites Limited, and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.