Parvez Ahmed became the CEO of The Jammu and Kashmir Bank Limited (NSE:J&KBANK) in 2016. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
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View our latest analysis for Jammu and Kashmir Bank
How Does Parvez Ahmed's Compensation Compare With Similar Sized Companies?
Our data indicates that The Jammu and Kashmir Bank Limited is worth ₹31b, and total annual CEO compensation is ₹6.6m. (This number is for the twelve months until March 2018). It is worth noting that the CEO compensation consists almost entirely of the salary, worth ₹6.6m. We examined companies with market caps from ₹14b to ₹56b, and discovered that the median CEO total compensation of that group was ₹22m.
Most shareholders would consider it a positive that Parvez Ahmed takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. Though positive, it's important we delve into the performance of the actual business.
You can see a visual representation of the CEO compensation at Jammu and Kashmir Bank, below.
Is The Jammu and Kashmir Bank Limited Growing?
On average over the last three years, The Jammu and Kashmir Bank Limited has grown earnings per share (EPS) by 27% each year (using a line of best fit). It achieved revenue growth of 49% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see. It could be important to check this free visual depiction of what analysts expect for the future.
Has The Jammu and Kashmir Bank Limited Been A Good Investment?
With a three year total loss of 3.9%, The Jammu and Kashmir Bank Limited would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
It appears that The Jammu and Kashmir Bank Limited remunerates its CEO below most similar sized companies. Many would consider this to indicate that the pay is modest since the business is growing. Despite some positives, it is likely that shareholders wanted better returns, given the performance over the last three years. We're not critical of the remuneration Parvez Ahmed receives, but it would be good to see improved returns to shareholders before the remuneration grows too much.