In This Article:
The CEO of Megasoft Limited (NSE:MEGASOFT) is Gandaravakottai Kumar. 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. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
View our latest analysis for Megasoft
How Does Gandaravakottai Kumar's Compensation Compare With Similar Sized Companies?
According to our data, Megasoft Limited has a market capitalization of ₹279m, and pays its CEO total annual compensation worth ₹3.9m. (This number is for the twelve months until March 2019). It is worth noting that the CEO compensation consists almost entirely of the salary, worth ₹3.9m. We examined a group of similar sized companies, with market capitalizations of below ₹14b. The median CEO total compensation in that group is ₹1.5m.
Thus we can conclude that Gandaravakottai Kumar receives more in total compensation than the median of a group of companies in the same market, and of similar size to Megasoft Limited. However, this doesn't necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see a visual representation of the CEO compensation at Megasoft, below.
Is Megasoft Limited Growing?
Over the last three years Megasoft Limited has shrunk its earnings per share by an average of 58% per year (measured with a line of best fit). In the last year, its revenue is down -7.7%.
Sadly for shareholders, earnings per share are actually down, over three years. This is compounded by the fact revenue is actually down on last year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Although we don't have analyst forecasts, you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Megasoft Limited Been A Good Investment?
Since shareholders would have lost about 62% over three years, some Megasoft 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 examined the amount Megasoft 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.