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The CEO of Shriram Pistons & Rings Limited (NSE:SHRIPISTON) is Ashok Taneja. 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. 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 Shriram Pistons & Rings

How Does Ashok Taneja's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Shriram Pistons & Rings Limited has a market cap of ₹21b, and is paying total annual CEO compensation of ₹131m. (This number is for the twelve months until March 2019). Notably, that's an increase of 202% over the year before. While we always look at total compensation first, we note that the salary component is less, at ₹6.0m. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of ₹14b to ₹55b. The median total CEO compensation was ₹23m.

As you can see, Ashok Taneja is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Shriram Pistons & Rings Limited is paying too much. 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 Shriram Pistons & Rings has changed from year to year.

Is Shriram Pistons & Rings Limited Growing?

On average over the last three years, Shriram Pistons & Rings Limited has grown earnings per share (EPS) by 13% each year (using a line of best fit). Its revenue is up 13% over last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. 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 Shriram Pistons & Rings Limited Been A Good Investment?

With a total shareholder return of 24% over three years, Shriram Pistons & Rings Limited shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

We compared the total CEO remuneration paid by Shriram Pistons & Rings 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.

However, the earnings per share growth over three years is certainly impressive. We also think investors are doing ok, over the same time period. While it may be worth researching further, we don't see a problem with the CEO pay, given the good EPS growth. So you may want to check if insiders are buying Shriram Pistons & Rings shares with their own money (free access).

If you want to buy a stock that is better than Shriram Pistons & Rings, this free list of high return, low debt companies is a great place to look.

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.