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In 2006 Mukhtarul Amin was appointed CEO of Superhouse Limited (NSE:SUPERHOUSE). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we’ll consider growth that the business demonstrates. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
View our latest analysis for Superhouse
How Does Mukhtarul Amin’s Compensation Compare With Similar Sized Companies?
According to our data, Superhouse Limited has a market capitalization of ₹1.3b, and pays its CEO total annual compensation worth ₹10m. (This number is for the twelve months until 2018). We think total compensation is more important but we note that the CEO salary is lower, at ₹9.0m. We took a group of companies with market capitalizations below ₹14b, and calculated the median CEO compensation to be ₹1.5m.
Thus we can conclude that Mukhtarul Amin receives more in total compensation than the median of a group of companies in the same market, and of similar size to Superhouse Limited. However, this doesn’t necessarily mean the pay 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 Superhouse has changed over time.
Is Superhouse Limited Growing?
Superhouse Limited has reduced its earnings per share by an average of 33% a year, over the last three years (measured with a line of best fit). Its revenue is down -2.1% over last year.
Sadly for shareholders, earnings per share are actually down, over three years. And the fact that revenue is down year on year arguably paints an ugly picture. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. 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 Superhouse Limited Been A Good Investment?
Given the total loss of 22% over three years, many shareholders in Superhouse Limited are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
In Summary…
We compared the total CEO remuneration paid by Superhouse Limited, and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.