In 2014 Ajoy Misra was appointed CEO of Tata Global Beverages Limited (NSE:TATAGLOBAL). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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. This process should give us an idea about how appropriately the CEO is paid.
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How Does Ajoy Misra's Compensation Compare With Similar Sized Companies?
According to our data, Tata Global Beverages Limited has a market capitalization of ₹139b, and pays its CEO total annual compensation worth ₹40m. (This is based on the year to March 2018). While we always look at total compensation first, we note that the salary component is less, at ₹29m. When we examined a selection of companies with market caps ranging from ₹70b to ₹224b, we found the median CEO total compensation was ₹40m.
So Ajoy Misra is paid around the average of the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see, below, how CEO compensation at Tata Global Beverages has changed over time.
Is Tata Global Beverages Limited Growing?
On average over the last three years, Tata Global Beverages Limited has grown earnings per share (EPS) by 42% each year (using a line of best fit). In the last year, its revenue is up 6.4%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Shareholders might be interested in this free visualization of analyst forecasts.
Has Tata Global Beverages Limited Been A Good Investment?
Most shareholders would probably be pleased with Tata Global Beverages Limited for providing a total return of 104% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
Remuneration for Ajoy Misra is close enough to the median pay for a CEO of a similar sized company .
Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. Indeed, many might consider the pay rather modest, given the solid company performance! Shareholders may want to check for free if Tata Global Beverages insiders are buying or selling shares.