Sridhar Ganesan became the CEO of Caplin Point Laboratories Limited (NSE:CAPPL) in 2015. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. 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.

View our latest analysis for Caplin Point Laboratories

How Does Sridhar Ganesan’s Compensation Compare With Similar Sized Companies?

According to our data, Caplin Point Laboratories Limited has a market capitalization of ₹31b, and pays its CEO total annual compensation worth ₹5.7m. Notably, that’s an increase of 17% over the year before. When we examined a selection of companies with market caps ranging from ₹14b to ₹57b, we found the median CEO compensation was ₹22m.

A first glance this seems like a real positive for shareholders, since Sridhar Ganesan is paid less than the average compensation paid by similar sized companies. However, before we heap on the praise, we should delve deeper to understand business performance.

You can see, below, how CEO compensation at Caplin Point Laboratories has changed over time.

Is Caplin Point Laboratories Limited Growing?

On average over the last three years, Caplin Point Laboratories Limited has grown earnings per share (EPS) by 40% each year. Its revenue is up 23% over last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. It’s a real positive to see this sort of growth in a single year. That suggests a healthy and growing business.

It could be important to check this free visual depiction of what analysts expect for the future.

Has Caplin Point Laboratories Limited Been A Good Investment?

Most shareholders would probably be pleased with Caplin Point Laboratories Limited for providing a total return of 41% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary…

It looks like Caplin Point Laboratories Limited pays its CEO less than similar sized companies. Considering the underlying business is growing earnings, this would suggest the pay is modest. The pleasing shareholder returns are the cherry on top; you might even consider that Sridhar Ganesan deserves a raise!

Most shareholders like to see a modestly paid CEO combined with strong performance by the company. It would be even more positive if company insiders are buying shares.