In This Article:
Madhukar Mishra has been the CEO of Star Paper Mills Limited (NSE:STARPAPER) since 2010. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
Check out our latest analysis for Star Paper Mills
How Does Madhukar Mishra’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Star Paper Mills Limited has a market cap of ₹2.5b, and is paying total annual CEO compensation of ₹21m. (This figure is for the year to 2018). We think total compensation is more important but we note that the CEO salary is lower, at ₹17m. We took a group of companies with market capitalizations below ₹14b, and calculated the median CEO compensation to be ₹1.5m.
It would therefore appear that Star Paper Mills Limited pays Madhukar Mishra more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn’t mean the remuneration 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 Star Paper Mills, below.
Is Star Paper Mills Limited Growing?
Star Paper Mills Limited has increased its earnings per share (EPS) by an average of 30% a year, over the last three years It achieved revenue growth of 13% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. IThis sort of respectable year-on-year revenue growth is often seen at a healthy, growing business.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Star Paper Mills Limited Been A Good Investment?
Most shareholders would probably be pleased with Star Paper Mills Limited for providing a total return of 370% over three years. This strong performance might mean some shareholders don’t mind if the CEO is paid more than is normal for a company of its size.
In Summary…
We examined the amount Star Paper Mills Limited pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
However we must not forget that the EPS growth has been very strong over three years. Even better, returns to shareholders have been plentiful, over the same time period. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. Whatever your view on compensation, you might want to check if insiders are buying or selling Star Paper Mills shares (free trial).