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Pritam Shah has been the CEO of Parag Milk Foods Limited (NSE:PARAGMILK) since 2009. 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.
View our latest analysis for Parag Milk Foods
How Does Pritam Shah's Compensation Compare With Similar Sized Companies?
Our data indicates that Parag Milk Foods Limited is worth ₹21b, and total annual CEO compensation is ₹24m. (This number is for the twelve months until March 2018). It is worth noting that the CEO compensation consists almost entirely of the salary, worth ₹24m. We examined companies with market caps from ₹6.9b to ₹28b, and discovered that the median CEO total compensation of that group was ₹16m.
It would therefore appear that Parag Milk Foods Limited pays Pritam Shah 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.
The graphic below shows how CEO compensation at Parag Milk Foods has changed from year to year.
Is Parag Milk Foods Limited Growing?
On average over the last three years, Parag Milk Foods Limited has grown earnings per share (EPS) by 44% each year (using a line of best fit). Its revenue is up 23% over last year.
This demonstrates that the company has been improving recently. A good result. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. Shareholders might be interested in this free visualization of analyst forecasts.
Has Parag Milk Foods Limited Been A Good Investment?
Parag Milk Foods Limited has not done too badly by shareholders, with a total return of 6.8%, over three years. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.
In Summary...
We compared total CEO remuneration at Parag Milk Foods 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.