N. Krishnan became the CEO of Zuari Global Limited (NSE:ZUARIGLOB) in 2015. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we’ll consider growth that the business demonstrates. 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.
View our latest analysis for Zuari Global
How Does N. Krishnan’s Compensation Compare With Similar Sized Companies?
Our data indicates that Zuari Global Limited is worth ₹3.3b, and total annual CEO compensation is ₹22m. That’s below the compensation, last year. We took a group of companies with market capitalizations below ₹14b, and calculated the median CEO compensation to be ₹1.5m.
Thus we can conclude that N. Krishnan receives more in total compensation than the median of a group of companies in the same market, and of similar size to Zuari Global 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.
You can see a visual representation of the CEO compensation at Zuari Global, below.
Is Zuari Global Limited Growing?
On average over the last three years, Zuari Global Limited has grown earnings per share (EPS) by 4.1% each year. It saw its revenue drop -9.6% over the last year.
I would prefer it if there was revenue growth, but I’m happy with the EPS growth. In conclusion we can’t form a strong opinion about business performance yet; but it’s one worth watching.
We don’t have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Zuari Global Limited Been A Good Investment?
Zuari Global Limited has generated a total shareholder return of 30% over three years, so most shareholders would 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 Zuari Global Limited with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.
One might like to have seen stronger growth, and the shareholder returns have failed to inspire, over the last three years. In conclusion we think the company should definitely focus on improving the business before awarding any large pay rises.