In This Article:
In 2007 V. Shankar was appointed CEO of Rallis India Limited (NSE:RALLIS). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
View our latest analysis for Rallis India
How Does V. Shankar’s Compensation Compare With Similar Sized Companies?
Our data indicates that Rallis India Limited is worth ₹32b, and total annual CEO compensation is ₹45m. We note that’s an increase of 19% above last year. We looked at a group of companies with market capitalizations from ₹14b to ₹57b, and the median CEO compensation was ₹22m.
As you can see, V. Shankar is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Rallis India Limited is paying too much. 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 Rallis India has changed from year to year.
Is Rallis India Limited Growing?
Over the last three years, Rallis India Limited has not seen its earnings per share change much, though they have deteriorated slightly. Its revenue is up 15% over last year.
The lack of earnings per share growth in the last three years is unimpressive. And while it’s good to see some good revenue growth recently, the growth isn’t really fast enough for me to put aside my concerns around earnings. These factors suggest that the business performance wouldn’t really justify a high pay packet for the CEO.
It could be important to check this free visual depiction of what analysts expect for the future.
Has Rallis India Limited Been A Good Investment?
Given the total loss of 9.3% over three years, many shareholders in Rallis India Limited are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary…
We compared the total CEO remuneration paid by Rallis India Limited, and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
Neither earnings per share nor revenue have been growing sufficiently fast to impress us, over the last three years.
Arguably worse, investors are without a positive return for the last three years. This contrasts with the growth in CEO remuneration, year on year. Some might well form the view that the CEO is paid too generously!