Rajesh Parikh has been the CEO of 20 Microns Limited (NSE:20MICRONS) since 2014. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.

Check out our latest analysis for 20 Microns

How Does Rajesh Parikh’s Compensation Compare With Similar Sized Companies?

According to our data, 20 Microns Limited has a market capitalization of ₹1.5b, and pays its CEO total annual compensation worth ₹5m. We note that’s an increase of 18% above last year. We took a group of companies with market capitalizations below ₹14.6b, and calculated the median CEO compensation to be ₹2m.

Thus we can conclude that Rajesh Parikh receives more in total compensation than the median of a group of companies in the same market, and of similar size to 20 Microns 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 a visual representation of the CEO compensation at 20 Microns, below.

Is 20 Microns Limited Growing?

Over the last three years 20 Microns Limited has grown its earnings per share (EPS) by an average of 57% per year. It achieved revenue growth of 8.4% over the last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. It’s nice to see a little revenue growth, as this is consistent with healthy business conditions.

Shareholders might be interested in this free visualization of analyst forecasts. .

Has 20 Microns Limited Been A Good Investment?

Boasting a total shareholder return of 48% over three years, 20 Microns 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 20 Microns 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, the earnings per share growth over three years is certainly impressive. In addition, shareholders have done well over the same time period. As a result of this good performance, the CEO remuneration may well be quite reasonable. Shareholders may want to check for free if 20 Microns Limited insiders are buying or selling shares.

Of course, the past can be informative so you might be interested in considering this analytical visualization showing the company history of earnings and revenue.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.