Ved Leekha has been the CEO of Pudumjee Paper Products Limited (NSE:PDMJEPAPER) since 2015. First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. 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.

See our latest analysis for Pudumjee Paper Products

How Does Ved Leekha's Compensation Compare With Similar Sized Companies?

According to our data, Pudumjee Paper Products Limited has a market capitalization of ₹1.7b, and pays its CEO total annual compensation worth ₹8.9m. (This number is for the twelve months until March 2018). We think total compensation is more important but we note that the CEO salary is lower, at ₹7.2m. We looked at a group of companies with market capitalizations under ₹14b, and the median CEO total compensation was ₹1.2m.

Thus we can conclude that Ved Leekha receives more in total compensation than the median of a group of companies in the same market, and of similar size to Pudumjee Paper Products 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.

You can see a visual representation of the CEO compensation at Pudumjee Paper Products, below.

Is Pudumjee Paper Products Limited Growing?

On average over the last three years, Pudumjee Paper Products Limited has grown earnings per share (EPS) by 12% each year (using a line of best fit). It achieved revenue growth of 11% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Pudumjee Paper Products Limited Been A Good Investment?

With a total shareholder return of 19% over three years, Pudumjee Paper Products Limited shareholders would, in general, be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

We compared total CEO remuneration at Pudumjee Paper Products Limited with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.

However we must not forget that the EPS growth has been very strong over three years. Looking at the same time period, we think that the shareholder returns are respectable. You might wish to research management further, but on this analysis, considering the EPS growth, we wouldn't call the CEO pay problematic. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Pudumjee Paper Products.

Important note: Pudumjee Paper Products may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.

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.