In This Article:
Sunil Mehta is the CEO of Cinevista Limited (NSE:CINEVISTA). 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. The aim of all this is to consider the appropriateness of CEO pay levels.
Check out our latest analysis for Cinevista
How Does Sunil Mehta's Compensation Compare With Similar Sized Companies?
According to our data, Cinevista Limited has a market capitalization of ₹565m, and paid its CEO total annual compensation worth ₹4.7m over the year to March 2019. It is worth noting that the CEO compensation consists almost entirely of the salary, worth ₹4.7m. We took a group of companies with market capitalizations below ₹14b, and calculated the median CEO total compensation to be ₹2.4m.
Thus we can conclude that Sunil Mehta receives more in total compensation than the median of a group of companies in the same market, and of similar size to Cinevista Limited. However, this doesn't necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
The graphic below shows how CEO compensation at Cinevista has changed from year to year.
Is Cinevista Limited Growing?
Cinevista Limited has reduced its earnings per share by an average of 67% a year, over the last three years (measured with a line of best fit). It achieved revenue growth of 87% over the last year.
Investors should note that, over three years, earnings per share are down. On the other hand, the strong revenue growth suggests the business is growing. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Cinevista Limited Been A Good Investment?
Most shareholders would probably be pleased with Cinevista Limited for providing a total return of 46% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
In Summary...
We compared the total CEO remuneration paid by Cinevista 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.
While we generally prefer to see stronger EPS growth, there's no arguing with the strong returns to shareholders, over the last three years. Considering this fine result for investors, we daresay the CEO compensation might be apt. Shareholders may want to check for free if Cinevista insiders are buying or selling shares.