Ashish Ram became the CEO of SRF Limited (NSE:SRF) in 2007. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.

Check out our latest analysis for SRF

How Does Ashish Ram's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that SRF Limited has a market cap of ₹157b, and is paying total annual CEO compensation of ₹59m. (This is based on the year to March 2019). We note that's an increase of 16% above last year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at ₹18m. We looked at a group of companies with market capitalizations from ₹72b to ₹230b, and the median CEO total compensation was ₹41m.

Thus we can conclude that Ashish Ram receives more in total compensation than the median of a group of companies in the same market, and of similar size to SRF 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 SRF has changed over time.

Is SRF Limited Growing?

On average over the last three years, SRF Limited has grown earnings per share (EPS) by 12% each year (using a line of best fit). In the last year, its revenue is up 30%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. 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 SRF Limited Been A Good Investment?

Boasting a total shareholder return of 61% over three years, SRF Limited has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

We examined the amount SRF Limited pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.

However we must not forget that the EPS growth has been very strong over three years. On top of that, in the same period, returns to shareholders have been great. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at SRF.