Aluru Prasad has been the CEO of HBL Power Systems Limited (NSE:HBLPOWER) since 2010. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
Check out our latest analysis for HBL Power Systems
How Does Aluru Prasad’s Compensation Compare With Similar Sized Companies?
Our data indicates that HBL Power Systems Limited is worth ₹11b, and total annual CEO compensation is ₹29m. (This is based on the year to 2018). While we always look at total compensation first, we note that the salary component is less, at ₹9.6m. We looked at a group of companies with market capitalizations from ₹7.0b to ₹28b, and the median CEO compensation was ₹16m.
Thus we can conclude that Aluru Prasad receives more in total compensation than the median of a group of companies in the same market, and of similar size to HBL Power Systems 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.
The graphic below shows how CEO compensation at HBL Power Systems has changed from year to year.
Is HBL Power Systems Limited Growing?
HBL Power Systems Limited has increased its earnings per share (EPS) by an average of 28% a year, over the last three years Its revenue is up 13% over last year.
This demonstrates that the company has been improving recently. A good result. IThis sort of respectable year-on-year revenue growth is often seen at a healthy, growing business.
We don’t have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has HBL Power Systems Limited Been A Good Investment?
Since shareholders would have lost about 39% over three years, some HBL Power Systems Limited shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary…
We examined the amount HBL Power Systems Limited pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. On the other hand returns to investors over the same period have probably disappointed many. While EPS is positive, we’d say shareholders would want better returns before the CEO is paid much more. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at HBL Power Systems.