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In 2011 Ravindra Goyal was appointed CEO of Kalyani Steels Limited (NSE:KSL). 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. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
See our latest analysis for Kalyani Steels
How Does Ravindra Goyal’s Compensation Compare With Similar Sized Companies?
According to our data, Kalyani Steels Limited has a market capitalization of ₹9.7b, and pays its CEO total annual compensation worth ₹76m. (This figure is for the year to 2018). While we always look at total compensation first, we note that the salary component is less, at ₹49m. We looked at a group of companies with market capitalizations under ₹14b, and the median CEO compensation was ₹1.5m.
Thus we can conclude that Ravindra Goyal receives more in total compensation than the median of a group of companies in the same market, and of similar size to Kalyani Steels 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.
You can see a visual representation of the CEO compensation at Kalyani Steels, below.
Is Kalyani Steels Limited Growing?
On average over the last three years, Kalyani Steels Limited has grown earnings per share (EPS) by 13% each year. Its revenue is up 6.9% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It’s good to see a bit of revenue growth, as this suggests the business is able to grow sustainably.
We don’t have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Kalyani Steels Limited Been A Good Investment?
I think that the total shareholder return of 49%, over three years, would leave most Kalyani Steels Limited shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary…
We examined the amount Kalyani Steels Limited pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
However we must not forget that the EPS growth has been very strong over three years. In addition, shareholders have done well over the same time period. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Kalyani Steels.