In This Article:
Prayasvin Patel is the CEO of Elecon Engineering Company Limited (NSE:ELECON). First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
Check out our latest analysis for Elecon Engineering
How Does Prayasvin Patel's Compensation Compare With Similar Sized Companies?
Our data indicates that Elecon Engineering Company Limited is worth ₹3.7b, and total annual CEO compensation was reported as ₹21m for the year to March 2019. That's less than last year. It is worth noting that the CEO compensation consists almost entirely of the salary, worth ₹20m. We looked at a group of companies with market capitalizations under ₹14b, and the median CEO total compensation was ₹2.4m.
Thus we can conclude that Prayasvin Patel receives more in total compensation than the median of a group of companies in the same market, and of similar size to Elecon Engineering Company 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.
The graphic below shows how CEO compensation at Elecon Engineering has changed from year to year.
Is Elecon Engineering Company Limited Growing?
Elecon Engineering Company Limited has increased its earnings per share (EPS) by an average of 67% a year, over the last three years (using a line of best fit). In the last year, its revenue is down 4.7%.
This demonstrates that the company has been improving recently. A good result. While it would be good to see revenue growth, profits matter more in the end. Although we don't have analyst forecasts you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Elecon Engineering Company Limited Been A Good Investment?
Since shareholders would have lost about 45% over three years, some Elecon Engineering Company Limited shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
We compared total CEO remuneration at Elecon Engineering Company Limited with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.