Is VRL Logistics Limited's (NSE:VRLLOG) CEO Pay Justified?

In this article:

Vijay Sankeshwar became the CEO of VRL Logistics Limited (NSE:VRLLOG) in 2007. 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. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.

Check out our latest analysis for VRL Logistics

How Does Vijay Sankeshwar's Compensation Compare With Similar Sized Companies?

Our data indicates that VRL Logistics Limited is worth ₹26b, and total annual CEO compensation is ₹39m. (This is based on the year to March 2019). That's less than last year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at ₹32m. We looked at a group of companies with market capitalizations from ₹14b to ₹58b, and the median CEO total compensation was ₹25m.

As you can see, Vijay Sankeshwar is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean VRL Logistics Limited is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.

You can see a visual representation of the CEO compensation at VRL Logistics, below.

NSEI:VRLLOG CEO Compensation, September 6th 2019
NSEI:VRLLOG CEO Compensation, September 6th 2019

Is VRL Logistics Limited Growing?

VRL Logistics Limited has increased its earnings per share (EPS) by an average of 4.9% a year, over the last three years (using a line of best fit). Its revenue is up 8.3% over last year.

I'm not particularly impressed by the revenue growth, but the modest improvement in EPS is good. Considering these factors I'd say performance has been pretty decent, though not amazing. Shareholders might be interested in this free visualization of analyst forecasts.

Has VRL Logistics Limited Been A Good Investment?

With a total shareholder return of 3.2% over three years, VRL Logistics Limited has done okay by shareholders. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

We examined the amount VRL Logistics Limited pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.

Over the last three years returns to investors have been uninspiring, and we would have liked to see stronger business growth. So it's certainly hard to argue that the CEO is modestly paid, although we don't see the remuneration as an issue. Whatever your view on compensation, you might want to check if insiders are buying or selling VRL Logistics shares (free trial).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.

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