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P. Choudhary became the CEO of Hindustan Composites Limited (NSE:HINDCOMPOS) in 2008. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
View 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 ₹2.8b, and pays its CEO total annual compensation worth ₹7.9m. (This figure is for the year to March 2018). We think total compensation is more important but we note that the CEO salary is lower, at ₹6.5m. We examined a group of similar sized companies, with market capitalizations of below ₹14b. The median CEO total compensation in that group is ₹1.3m.
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. 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 Hindustan Composites has changed from year to year.
Is Hindustan Composites Limited Growing?
On average over the last three years, Hindustan Composites Limited has shrunk earnings per share by 1.7% each year (measured with a line of best fit). It saw its revenue drop -1.3% over the last year.
The lack of earnings per share growth in the last three years is unimpressive. This is compounded by the fact revenue is actually down on last year. So given this relatively weak performance, shareholders would probably not want to see high compensation 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 Hindustan Composites Limited Been A Good Investment?
Since shareholders would have lost about 47% 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.