In 1994 Aditya Puri was appointed CEO of HDFC Bank Limited (NSE:HDFCBANK). This analysis aims first to contrast CEO compensation with other large companies. Next, we’ll consider growth that the business demonstrates. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.

Check out our latest analysis for HDFC Bank

How Does Aditya Puri’s Compensation Compare With Similar Sized Companies?

Our data indicates that HDFC Bank Limited is worth ₹5.2t, and total annual CEO compensation is ₹96m. That’s actually a decrease on the year before. When we examined a group of companies with market caps over ₹587.2b, we found that their median CEO compensation was ₹86m.

So Aditya Puri receives a similar amount to the median CEO pay, amongst the companies we looked at. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

You can see a visual representation of the CEO compensation at HDFC Bank, below.

Is HDFC Bank Limited Growing?

Over the last three years HDFC Bank Limited has grown its earnings per share (EPS) by an average of 17% per year. In the last year, its revenue is up 19%.

This demonstrates that the company has been improving recently. A good result. It’s a real positive to see this sort of growth in a single year. That suggests a healthy and growing business.

Shareholders might be interested in this free visualization of analyst forecasts. .

Has HDFC Bank Limited Been A Good Investment?

Boasting a total shareholder return of 79% over three years, HDFC Bank Limited has done well by shareholders. This strong performance might mean some shareholders don’t mind if the CEO is paid more than is normal for a company of its size.

In Summary…

Aditya Puri is paid around what is normal the leaders of larger companies.

Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. Indeed, many might consider the pay rather modest, given the solid company performance! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at HDFC Bank Limited.

Or you might prefer examine intently this intuitive graph showing past earnings and revenue.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.