In 2015 Sridhar Ganesan was appointed CEO of Caplin Point Laboratories Limited (NSE:CAPLIPOINT). 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 - 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.

Check out our latest analysis for Caplin Point Laboratories

How Does Sridhar Ganesan's Compensation Compare With Similar Sized Companies?

Our data indicates that Caplin Point Laboratories Limited is worth ₹30b, and total annual CEO compensation was reported as ₹5.7m for the year to March 2019. Notably, the salary of ₹5.7m is the vast majority of the CEO compensation. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of ₹14b to ₹57b. The median total CEO compensation was ₹23m.

This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.

The graphic below shows how CEO compensation at Caplin Point Laboratories has changed from year to year.

Is Caplin Point Laboratories Limited Growing?

Over the last three years Caplin Point Laboratories Limited has grown its earnings per share (EPS) by an average of 32% per year (using a line of best fit). In the last year, its revenue is up 23%.

This shows that the company has improved itself over the last few years. Good news for shareholders. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. You might want to check this free visual report on analyst forecasts for future earnings.

Has Caplin Point Laboratories Limited Been A Good Investment?

Caplin Point Laboratories Limited has generated a total shareholder return of 14% over three years, so most shareholders would be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

Caplin Point Laboratories Limited is currently paying its CEO below what is normal for companies of its size.

Considering the underlying business is growing earnings, this would suggest the pay is modest. While returns over the last few years haven't been top notch, there is nothing to suggest to us that Sridhar Ganesan is overcompensated. Few would complain about reasonable CEO remuneration when the business is growing earnings per share. It would be an additional positive if insiders are buying shares. Whatever your view on compensation, you might want to check if insiders are buying or selling Caplin Point Laboratories shares (free trial).