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The CEO of Power Mech Projects Limited (NSE:POWERMECH) is Sajja Babu. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.

See our latest analysis for Power Mech Projects

How Does Sajja Babu's Compensation Compare With Similar Sized Companies?

According to our data, Power Mech Projects Limited has a market capitalization of ₹14b, and pays its CEO total annual compensation worth ₹54m. (This number is for the twelve months until March 2018). We think total compensation is more important but we note that the CEO salary is lower, at ₹13m. When we examined a selection of companies with market caps ranging from ₹6.9b to ₹28b, we found the median CEO total compensation was ₹16m.

Thus we can conclude that Sajja Babu receives more in total compensation than the median of a group of companies in the same market, and of similar size to Power Mech Projects Limited. However, this doesn't necessarily mean the pay 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, below, how CEO compensation at Power Mech Projects has changed over time.

Is Power Mech Projects Limited Growing?

Over the last three years Power Mech Projects Limited has grown its earnings per share (EPS) by an average of 15% per year (using a line of best fit). In the last year, its revenue is up 46%.

This shows that the company has improved itself over the last few years. Good news for shareholders. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see. Shareholders might be interested in this free visualization of analyst forecasts.

Has Power Mech Projects Limited Been A Good Investment?

Most shareholders would probably be pleased with Power Mech Projects Limited for providing a total return of 66% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

We compared the total CEO remuneration paid by Power Mech Projects Limited, and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group.

However, the earnings per share growth over three years is certainly impressive. In addition, shareholders have done well over the same time period. So, considering this good performance, the CEO compensation may be quite appropriate. Shareholders may want to check for free if Power Mech Projects insiders are buying or selling shares.

If you want to buy a stock that is better than Power Mech Projects, this free list of high return, low debt companies is a great place to look.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.