Why Cantabil Retail India Limited's (NSE:CANTABIL) CEO Pay Matters To You

In this article:

Vijay Bansal became the CEO of Cantabil Retail India Limited (NSE:CANTABIL) in 2009. 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.

View our latest analysis for Cantabil Retail India

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

According to our data, Cantabil Retail India Limited has a market capitalization of ₹3.4b, and paid its CEO total annual compensation worth ₹8.3m over the year to March 2019. It is worth noting that the CEO compensation consists almost entirely of the salary, worth ₹8.3m. We took a group of companies with market capitalizations below ₹14b, and calculated the median CEO total compensation to be ₹1.8m.

It would therefore appear that Cantabil Retail India Limited pays Vijay Bansal 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.

The graphic below shows how CEO compensation at Cantabil Retail India has changed from year to year.

NSEI:CANTABIL CEO Compensation, October 15th 2019
NSEI:CANTABIL CEO Compensation, October 15th 2019

Is Cantabil Retail India Limited Growing?

Cantabil Retail India Limited has increased its earnings per share (EPS) by an average of 46% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 42%.

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. Although we don't have analyst forecasts you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Cantabil Retail India Limited Been A Good Investment?

Boasting a total shareholder return of 209% over three years, Cantabil Retail India 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 Cantabil Retail India 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.

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. So, considering this good performance, the CEO compensation may be quite appropriate. Shareholders may want to check for free if Cantabil Retail India insiders are buying or selling shares.

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.

Advertisement