In This Article:
Keshab Panda became the CEO of L&T Technology Services Limited (NSE:LTTS) in 2016. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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. This process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for L&T Technology Services
How Does Keshab Panda's Compensation Compare With Similar Sized Companies?
According to our data, L&T Technology Services Limited has a market capitalization of ₹168b, and paid its CEO total annual compensation worth ₹69m over the year to March 2019. That's just a smallish increase of 6.0% on last year. While we always look at total compensation first, we note that the salary component is less, at ₹47m. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of ₹71b to ₹227b. The median total CEO compensation was ₹44m.
It would therefore appear that L&T Technology Services Limited pays Keshab Panda 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.
You can see a visual representation of the CEO compensation at L&T Technology Services, below.
Is L&T Technology Services Limited Growing?
L&T Technology Services Limited has increased its earnings per share (EPS) by an average of 20% a year, over the last three years (using a line of best fit). It achieved revenue growth of 30% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. You might want to check this free visual report on analyst forecasts for future earnings.
Has L&T Technology Services Limited Been A Good Investment?
Boasting a total shareholder return of 92% over three years, L&T Technology Services Limited has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
In Summary...
We compared the total CEO remuneration paid by L&T Technology Services Limited, and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.