In 2010 Nirmal Minda was appointed CEO of Minda Industries Limited (NSE:MINDAIND). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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. This method should give us information to assess how appropriately the company pays the CEO.
View our latest analysis for Minda Industries
How Does Nirmal Minda's Compensation Compare With Similar Sized Companies?
Our data indicates that Minda Industries Limited is worth ₹89b, and total annual CEO compensation was reported as ₹84m for the year to March 2019. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at ₹14m. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of ₹71b to ₹228b. The median total CEO compensation was ₹45m.
As you can see, Nirmal Minda is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Minda Industries Limited is paying too much. 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, below, how CEO compensation at Minda Industries has changed over time.
Is Minda Industries Limited Growing?
Over the last three years Minda Industries Limited has grown its earnings per share (EPS) by an average of 27% per year (using a line of best fit). Its revenue is up 19% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. It could be important to check this free visual depiction of what analysts expect for the future.
Has Minda Industries Limited Been A Good Investment?
I think that the total shareholder return of 204%, over three years, would leave most Minda Industries Limited shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
In Summary...
We compared the total CEO remuneration paid by Minda Industries 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.