In This Article:
In 2011 Jagan Reddy Nellore was appointed CEO of Rain Industries Limited (NSE:RAIN). First, this article will compare CEO compensation with compensation at similar sized companies. 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 Rain Industries
How Does Jagan Reddy Nellore’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Rain Industries Limited has a market cap of ₹61.7b, and is paying total annual CEO compensation of ₹17m. We looked at a group of companies with market capitalizations from ₹29.6b to ₹118.4b, and the median CEO compensation was ₹27m.
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 Rain Industries has changed from year to year.
Is Rain Industries Limited Growing?
Over the last three years Rain Industries Limited has grown its earnings per share (EPS) by an average of 69% per year. It achieved revenue growth of 36% over the last year.
This demonstrates that the company has been improving recently. A good result. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Rain Industries Limited Been A Good Investment?
Most shareholders would probably be pleased with Rain Industries Limited for providing a total return of 414% 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…
It looks like Rain Industries Limited pays its CEO less than similar sized companies. Considering the underlying business is growing earnings, this would suggest the pay is modest. And given most shareholders are probably very happy with recent returns, you might even think that Jagan Reddy Nellore deserves a raise!
It’s not often we see shareholders do so well, and yet the CEO is paid modestly. It would be even more positive if company insiders are buying shares. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Rain Industries Limited (free visualization of insider trades).