Rajiv Bajaj became the CEO of Bajaj Auto Limited (NSE:BAJAJ-AUTO) in 2005. First, this article will compare CEO compensation with compensation at other large companies. 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 Bajaj Auto

How Does Rajiv Bajaj's Compensation Compare With Similar Sized Companies?

Our data indicates that Bajaj Auto Limited is worth ₹789b, and total annual CEO compensation is ₹323m. (This is based on the year to March 2019). Notably, that's an increase of 14% over the year before. We think total compensation is more important but we note that the CEO salary is lower, at ₹72m. We looked at a group of companies with market capitalizations over ₹572b and the median CEO total compensation was ₹80m. There aren't very many mega-cap companies, so we had to take a wide range to get a meaningful comparison figure.

It would therefore appear that Bajaj Auto Limited pays Rajiv Bajaj more than the median CEO remuneration at large companies, in the same market. However, this fact alone doesn't mean the remuneration 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 a visual representation of the CEO compensation at Bajaj Auto, below.

Is Bajaj Auto Limited Growing?

On average over the last three years, Bajaj Auto Limited has grown earnings per share (EPS) by 8.4% each year (using a line of best fit). It achieved revenue growth of 13% over the last year.

This revenue growth could really point to a brighter future. And, while modest, the earnings per share growth is noticeable. So while performance isn't amazing, we think it really does seem quite respectable. You might want to check this free visual report on analyst forecasts for future earnings.

Has Bajaj Auto Limited Been A Good Investment?

Bajaj Auto Limited has generated a total shareholder return of 1.4% over three years, so most shareholders wouldn't be too disappointed. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

We compared the total CEO remuneration paid by Bajaj Auto Limited, and compared it to remuneration at a group of other large companies. Our data suggests that it pays above the median CEO pay within that group.

One might like to have seen stronger growth, and the shareholder returns have failed to inspire, over the last three years. So it's certainly hard to argue that the CEO is modestly paid, although we don't see the remuneration as an issue. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Bajaj Auto (free visualization of insider trades).

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.