In 2012 Prem Rishi was appointed CEO of MVL Limited (NSE:MVL). 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. 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.

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How Does Prem Rishi's Compensation Compare With Similar Sized Companies?

Our data indicates that MVL Limited is worth ₹120m, and total annual CEO compensation is ₹5.4m. (This figure is for the year to March 2018). Notably, the salary of ₹5.3m is the vast majority of the CEO compensation. We examined a group of similar sized companies, with market capitalizations of below ₹14b. The median CEO total compensation in that group is ₹1.3m.

It would therefore appear that MVL Limited pays Prem Rishi 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 MVL, below.

Is MVL Limited Growing?

MVL Limited has increased its earnings per share (EPS) by an average of 1.6% a year, over the last three years (using a line of best fit). In the last year, its revenue is down -132%.

I generally like to see a little revenue growth, but I'm happy with the EPS growth. These two metric are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. Although we don't have analyst forecasts, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has MVL Limited Been A Good Investment?

With a three year total loss of 33%, MVL Limited would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

We compared total CEO remuneration at MVL Limited with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.

While we have not been overly impressed by the business performance, the shareholder returns, over three years, have been disappointing. Considering this, we have the opinion that the CEO pay is more on the generous side, than the modest side. Whatever your view on compensation, you might want to check if insiders are buying or selling MVL shares (free trial).