In This Article:
In 2011 Tiger Tyagarajan was appointed CEO of Genpact Limited (NYSE:G). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
See our latest analysis for Genpact
How Does Tiger Tyagarajan's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Genpact Limited has a market cap of US$7.3b, and reported total annual CEO compensation of US$22m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$700k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. When we examined a selection of companies with market caps ranging from US$4.0b to US$12b, we found the median CEO total compensation was US$6.8m.
Thus we can conclude that Tiger Tyagarajan receives more in total compensation than the median of a group of companies in the same market, and of similar size to Genpact Limited. However, this doesn't necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see a visual representation of the CEO compensation at Genpact, below.
Is Genpact Limited Growing?
On average over the last three years, Genpact Limited has grown earnings per share (EPS) by 6.8% each year (using a line of best fit). It achieved revenue growth of 14% over the last year.
This revenue growth could really point to a brighter future. And the modest growth in earnings per share isn't bad, either. So while we'd stop just short of calling this a top performer, but we think it is well worth watching. It could be important to check this free visual depiction of what analysts expect for the future.
Has Genpact Limited Been A Good Investment?
Boasting a total shareholder return of 63% over three years, Genpact Limited has done well by shareholders. 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 examined the amount Genpact 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.