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Sahil Vachani became the CEO of Max Ventures and Industries Limited (NSE:MAXVIL) in 2016. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
See our latest analysis for Max Ventures and Industries
How Does Sahil Vachani's Compensation Compare With Similar Sized Companies?
Our data indicates that Max Ventures and Industries Limited is worth ₹6.3b, and total annual CEO compensation is ₹22m. (This is based on the year to March 2018). We think total compensation is more important but we note that the CEO salary is lower, at ₹9.5m. We took a group of companies with market capitalizations below ₹14b, and calculated the median CEO total compensation to be ₹1.3m.
It would therefore appear that Max Ventures and Industries Limited pays Sahil Vachani 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. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see, below, how CEO compensation at Max Ventures and Industries has changed over time.
Is Max Ventures and Industries Limited Growing?
On average over the last three years, Max Ventures and Industries Limited has shrunk earnings per share by 90% each year (measured with a line of best fit). It achieved revenue growth of 27% over the last year.
The reduction in earnings per share, over three years, is arguably concerning. But on the other hand, revenue growth is strong, suggesting a brighter future. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Max Ventures and Industries Limited Been A Good Investment?
With a three year total loss of 6.1%, Max Ventures and Industries Limited would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
We compared the total CEO remuneration paid by Max Ventures and Industries Limited, and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.