In 1992 Jagarlamudi Mohan was appointed CEO of Jocil Limited (NSE:JOCIL). First, this article will compare CEO compensation with compensation at similar sized companies. 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 Jocil

How Does Jagarlamudi Mohan’s Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Jocil Limited has a market cap of ₹1.1b, and is paying total annual CEO compensation of ₹12m. (This figure is for the year to 2018). While we always look at total compensation first, we note that the salary component is less, at ₹5.6m. We took a group of companies with market capitalizations below ₹14b, and calculated the median CEO compensation to be ₹1.5m.

As you can see, Jagarlamudi Mohan is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Jocil Limited is paying too much. 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 Jocil has changed over time.

Is Jocil Limited Growing?

Over the last three years Jocil Limited has shrunk its earnings per share by an average of 61% per year. In the last year, its revenue is up 2.9%.

Few shareholders would be pleased to read that earnings per share are lower over three years. And the modest revenue growth over 12 months isn’t much comfort against the reduced earnings per share. It’s hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration.

We don’t have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Jocil Limited Been A Good Investment?

Since shareholders would have lost about 35% over three years, some Jocil Limited shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary…

We compared total CEO remuneration at Jocil Limited with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.

We think many shareholders would be underwhelmed with the business growth over the last three years.

Just as bad, share price gains for investors have failed to materialize, over the same period. In our opinion the CEO might be paid too generously! Whatever your view on compensation, you might want to check if insiders are buying or selling Jocil shares (free trial).

Of course, the past can be informative so you might be interested in considering this analytical visualization showing the company history of earnings and revenue.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.