In This Article:
V. Mathew became the CEO of The South Indian Bank Limited (NSE:SOUTHBANK) in 2014. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we’ll look at a snap shot of the business growth. 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.
Check out our latest analysis for South Indian Bank
How Does V. Mathew’s Compensation Compare With Similar Sized Companies?
Our data indicates that The South Indian Bank Limited is worth ₹27b, and total annual CEO compensation is ₹13m. We note that’s an increase of 20% above last year. We looked at a group of companies with market capitalizations from ₹14b to ₹58b, and the median CEO compensation was ₹21m.
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.
You can see, below, how CEO compensation at South Indian Bank has changed over time.
Is The South Indian Bank Limited Growing?
Over the last three years The South Indian Bank Limited has shrunk its earnings per share by an average of 12% per year. In the last year, its revenue is up 14%.
Unfortunately, earnings per share have trended lower over the last three years. And while it’s good to see some good revenue growth recently, the growth isn’t really fast enough for me to put aside my concerns around earnings. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO.
You might want to check this free visual report on analyst forecasts for future earnings.
Has The South Indian Bank Limited Been A Good Investment?
With a three year total loss of 15%, The South Indian Bank Limited would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary…
It appears that The South Indian Bank Limited remunerates its CEO below most similar sized companies.
Shareholders should note that compensation for V. Mathew is under the median of a group of similar sized companies. But then, EPS growth is lacking and so are the returns to shareholders. This contrasts with the increase in CEO remuneration on last year, though it was off a low base. We would not call the pay too generous, but nor would we claim the CEO is underpaid, given lacklustre business performance. Shareholders may want to check for free if The South Indian Bank Limited insiders are buying or selling shares.