V. Mathew has been the CEO of The South Indian Bank Limited (NSE:SOUTHBANK) since 2014. First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.

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Check out our latest analysis for South Indian Bank

How Does V. Mathew's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that The South Indian Bank Limited has a market cap of ₹25b, and is paying total annual CEO compensation of ₹13m. (This number is for the twelve months until March 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at ₹9.5m. We examined companies with market caps from ₹14b to ₹56b, and discovered that the median CEO total compensation of that group was ₹22m.

A first glance this seems like a real positive for shareholders, since V. Mathew 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.

You can see, below, how CEO compensation at South Indian Bank has changed over time.

Is The South Indian Bank Limited Growing?

On average over the last three years, The South Indian Bank Limited has shrunk earnings per share by 24% each year (measured with a line of best fit). It achieved revenue growth of 3.6% over the last year.

Sadly for shareholders, earnings per share are actually down, over three years. The modest increase in revenue in the last year isn't enough to make me overlook the disappointing change in earnings per share. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Shareholders might be interested in this free visualization of analyst forecasts.

Has The South Indian Bank Limited Been A Good Investment?

Given the total loss of 11% over three years, many shareholders in The South Indian Bank Limited are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.

In Summary...

It looks like The South Indian Bank Limited pays its CEO less than similar sized companies.