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Janumahanti Rao became the CEO of Mold-Tek Packaging Limited (NSE:MOLDTKPAC) in 2008. 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. 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 Mold-Tek Packaging
How Does Janumahanti Rao's Compensation Compare With Similar Sized Companies?
Our data indicates that Mold-Tek Packaging Limited is worth ₹7.3b, and total annual CEO compensation is ₹13m. (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 ₹9.6m. We took a group of companies with market capitalizations below ₹14b, and calculated the median CEO total compensation to be ₹1.2m.
Thus we can conclude that Janumahanti Rao receives more in total compensation than the median of a group of companies in the same market, and of similar size to Mold-Tek Packaging 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, below, how CEO compensation at Mold-Tek Packaging has changed over time.
Is Mold-Tek Packaging Limited Growing?
On average over the last three years, Mold-Tek Packaging Limited has grown earnings per share (EPS) by 7.1% each year (using a line of best fit). In the last year, its revenue is up 18%.
I think the revenue growth is good. And the modest growth in earnings per share isn't bad, either. Although we'll stop short of calling the stock a top performer, we think the company has potential. Shareholders might be interested in this free visualization of analyst forecasts.
Has Mold-Tek Packaging Limited Been A Good Investment?
Boasting a total shareholder return of 101% over three years, Mold-Tek Packaging Limited has done well by shareholders. 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 Mold-Tek Packaging 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.