In This Article:
Lalit Jalan became the CEO of Reliance Infrastructure Limited (NSE:RELINFRA) in 2016. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we’ll consider growth that the business demonstrates. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for Reliance Infrastructure
How Does Lalit Jalan’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Reliance Infrastructure Limited has a market cap of ₹94.5b, and is paying total annual CEO compensation of ₹35m. That’s a notable increase of 26% on last year. When we examined a selection of companies with market caps ranging from ₹72.9b to ₹233.2b, we found the median CEO compensation was ₹36m.
So Lalit Jalan receives a similar amount to the median CEO pay, amongst the companies we looked at. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
The graphic below shows how CEO compensation at Reliance Infrastructure has changed from year to year.
Is Reliance Infrastructure Limited Growing?
Reliance Infrastructure Limited has reduced its earnings per share by an average of 9.8% a year, over the last three years. In the last year, its revenue is up 1.3%.
Few shareholders would be pleased to read that earnings per share are lower over three years. The fairly low revenue growth fails to impress given that the earnings per share is down. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO.
It could be important to check this free visual depiction of what analysts expect for the future.
Has Reliance Infrastructure Limited Been A Good Investment?
With a three year total loss of 0.9%, Reliance Infrastructure Limited would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary…
Remuneration for Lalit Jalan is close enough to the median pay for a CEO of a similar sized company .
The company isn’t growing EPS, and shareholder returns have been disappointing. This doesn’t look great when you consider CEO remuneration is up on last year. Few would argue that it’s wise for the company to pay any more, before returns improve. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Reliance Infrastructure Limited (free visualization of insider trades).