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S. Ramakrishnan is the CEO of Southern Petrochemical Industries Corporation Limited (NSE:SPIC). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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 Southern Petrochemical Industries
How Does S. Ramakrishnan's Compensation Compare With Similar Sized Companies?
Our data indicates that Southern Petrochemical Industries Corporation Limited is worth ₹4.7b, and total annual CEO compensation is ₹6.9m. (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 ₹4.8m. We took a group of companies with market capitalizations below ₹14b, and calculated the median CEO total compensation to be ₹1.3m.
It would therefore appear that Southern Petrochemical Industries Corporation Limited pays S. Ramakrishnan more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see, below, how CEO compensation at Southern Petrochemical Industries has changed over time.
Is Southern Petrochemical Industries Corporation Limited Growing?
On average over the last three years, Southern Petrochemical Industries Corporation Limited has grown earnings per share (EPS) by 23% each year (using a line of best fit). In the last year, its revenue is up 30%.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Although we don't have analyst forecasts, you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Southern Petrochemical Industries Corporation Limited Been A Good Investment?
Southern Petrochemical Industries Corporation Limited has generated a total shareholder return of 5.2% over three years, so most shareholders wouldn't be too disappointed. But they probably don't want to see the CEO paid more than is normal for companies around the same size.