Sunil Kothari became the CEO of Om Metals Infraprojects Limited (NSE:OMMETALS) in 2015. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. 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.
See our latest analysis for Om Metals Infraprojects
How Does Sunil Kothari’s Compensation Compare With Similar Sized Companies?
According to our data, Om Metals Infraprojects Limited has a market capitalization of ₹3.5b, and pays its CEO total annual compensation worth ₹9m. That’s a fairly small increase of 0.2% on year before. We looked at a group of companies with market capitalizations under ₹14.5b, and the median CEO compensation was ₹2m.
It would therefore appear that Om Metals Infraprojects Limited pays Sunil Kothari 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 better assess whether the pay is overly generous by looking into the underlying business performance.
You can see, below, how CEO compensation at Om Metals Infraprojects has changed over time.
Is Om Metals Infraprojects Limited Growing?
Om Metals Infraprojects Limited has reduced its earnings per share by an average of 7.3% a year, over the last three years. Its revenue is up 26% over last year.
The reduction in earnings per share, over three years, is arguably concerning. But in contrast the revenue growth is strong, suggesting future potential for earnings growth. In conclusion we can’t form a strong opinion about business performance yet; but it’s one 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 Om Metals Infraprojects Limited Been A Good Investment?
Since shareholders would have lost about 28% over three years, some Om Metals Infraprojects Limited shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary…
We compared total CEO remuneration at Om Metals Infraprojects 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.