In This Article:
Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
In 2015 Mandar Joshi was appointed CEO of IVP Limited (NSE:IVP). 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. 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 IVP
How Does Mandar Joshi's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that IVP Limited has a market cap of ₹960m, and is paying total annual CEO compensation of ₹14m. (This is based on the year to March 2018). It is worth noting that the CEO compensation consists almost entirely of the salary, worth ₹14m. We looked at a group of companies with market capitalizations under ₹14b, and the median CEO total compensation was ₹1.2m.
As you can see, Mandar Joshi is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean IVP Limited is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see, below, how CEO compensation at IVP has changed over time.
Is IVP Limited Growing?
IVP Limited has reduced its earnings per share by an average of 25% a year, over the last three years (measured with a line of best fit). In the last year, its revenue is up 19%.
Unfortunately, earnings per share have trended lower over the last three years. There's no doubt that the silver lining is that revenue is up. But it isn't sufficiently fast growth to overlook the fact that earnings per share has gone backwards over three years. 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 shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has IVP Limited Been A Good Investment?
IVP Limited has generated a total shareholder return of 21% over three years, so most shareholders would be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.
In Summary...
We compared total CEO remuneration at IVP Limited with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.