Sunil Gala became the CEO of Navneet Education Limited (NSE:NAVNETEDUL) in 2013. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.

View our latest analysis for Navneet Education

How Does Sunil Gala's Compensation Compare With Similar Sized Companies?

According to our data, Navneet Education Limited has a market capitalization of ₹23b, and pays its CEO total annual compensation worth ₹15m. (This is based on the year to March 2019). Notably, that's an increase of 14% over the year before. While we always look at total compensation first, we note that the salary component is less, at ₹6.9m. We examined companies with market caps from ₹14b to ₹55b, and discovered that the median CEO total compensation of that group was ₹23m.

A first glance this seems like a real positive for shareholders, since Sunil Gala is paid less than the average total compensation paid by similar sized companies. While this is a good thing, you'll need to understand the business better before you can form an opinion.

The graphic below shows how CEO compensation at Navneet Education has changed from year to year.

Is Navneet Education Limited Growing?

Over the last three years Navneet Education Limited has grown its earnings per share (EPS) by an average of 7.6% per year (using a line of best fit). In the last year, its revenue is up 20%.

I would argue that the modest growth in revenue is a notable positive. And the improvement in earnings per share is modest but respectable. 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 Navneet Education Limited Been A Good Investment?

Navneet Education Limited has generated a total shareholder return of 7.8% over three years, so most shareholders wouldn't be too disappointed. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

Navneet Education Limited is currently paying its CEO below what is normal for companies of its size.

It's well worth noting that while Sunil Gala is paid less than most company leaders (at companies of similar size), share price performance has been somewhat uninspiring. However I do not find the CEO compensation to be concerning. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Navneet Education (free visualization of insider trades).