In This Article:
Gautam Mehra has been the CEO of Savita Oil Technologies Limited (NSE:SOTL) since 2012. 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 method should give us information to assess how appropriately the company pays the CEO.
See our latest analysis for Savita Oil Technologies
How Does Gautam Mehra's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Savita Oil Technologies Limited has a market cap of ₹13b, and reported total annual CEO compensation of ₹35m for the year to March 2019. We note that's an increase of 33% above last year. While we always look at total compensation first, we note that the salary component is less, at ₹9.7m. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. We looked at a group of companies with market capitalizations from ₹7.1b to ₹28b, and the median CEO total compensation was ₹21m.
As you can see, Gautam Mehra is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Savita Oil Technologies Limited is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see a visual representation of the CEO compensation at Savita Oil Technologies, below.
Is Savita Oil Technologies Limited Growing?
Over the last three years Savita Oil Technologies Limited has grown its earnings per share (EPS) by an average of 26% per year (using a line of best fit). Its revenue is up 19% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. It could be important to check this free visual depiction of what analysts expect for the future.
Has Savita Oil Technologies Limited Been A Good Investment?
I think that the total shareholder return of 44%, over three years, would leave most Savita Oil Technologies Limited shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
In Summary...
We examined the amount Savita Oil Technologies Limited pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.