How Should Investors React To Deccan Cements Limited's (NSE:DECCANCE) CEO Pay?

In This Article:

P. Parvathi became the CEO of Deccan Cements Limited (NSE:DECCANCE) in 2003. First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. 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 Deccan Cements

How Does P. Parvathi's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Deccan Cements Limited has a market cap of ₹5.0b, and is paying total annual CEO compensation of ₹27m. (This is based on the year to March 2019). We note that's an increase of 13% above last year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at ₹9.2m. We examined a group of similar sized companies, with market capitalizations of below ₹14b. The median CEO total compensation in that group is ₹1.5m.

Thus we can conclude that P. Parvathi receives more in total compensation than the median of a group of companies in the same market, and of similar size to Deccan Cements 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.

The graphic below shows how CEO compensation at Deccan Cements has changed from year to year.

NSEI:DECCANCE CEO Compensation, September 4th 2019
NSEI:DECCANCE CEO Compensation, September 4th 2019

Is Deccan Cements Limited Growing?

Deccan Cements Limited has increased its earnings per share (EPS) by an average of 2.8% a year, over the last three years (using a line of best fit). It achieved revenue growth of 13% over the last year.

This revenue growth could really point to a brighter future. And, while modest, the earnings per share growth is noticeable. So while we'd stop just short of calling this a top performer, but we think it is well worth watching. It could be important to check this free visual depiction of what analysts expect for the future.

Has Deccan Cements Limited Been A Good Investment?

Given the total loss of 21% over three years, many shareholders in Deccan Cements Limited are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

We compared the total CEO remuneration paid by Deccan Cements Limited, and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group.