In 2009 Krishna Chigurupati was appointed CEO of Granules India Limited (NSE:GRANULES). 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. 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.

View our latest analysis for Granules India

How Does Krishna Chigurupati’s Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Granules India Limited has a market cap of ₹24.8b, and is paying total annual CEO compensation of ₹112m. That’s below the compensation, last year. We looked at a group of companies with market capitalizations from ₹14.7b to ₹58.8b, and the median CEO compensation was ₹22m.

As you can see, Krishna Chigurupati is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Granules India Limited is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.

You can see a visual representation of the CEO compensation at Granules India, below.

Is Granules India Limited Growing?

Over the last three years Granules India Limited has grown its earnings per share (EPS) by an average of 5.1% per year. In the last year, its revenue is up 32%.

It’s hard to interpret the strong revenue growth as anything other than a positive. With that in mind, the modestly improving EPS seems positive. So while I’d stop short of saying growth is absolutely outstanding, there are definitely some clear positives!

You might want to check this free visual report on analyst forecasts for future earnings.

Has Granules India Limited Been A Good Investment?

Given the total loss of 33% over three years, many shareholders in Granules India Limited are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary…

We compared total CEO remuneration at Granules India 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.

While we have not been overly impressed by the business performance, the shareholder returns, over three years, have been disappointing. Shareholders may wish to consider further research. Although we don’t think the CEO pay is too high, it is probably more on the generous side of things. So you may want to check if insiders are buying Granules India Limited shares with their own money (free access).

Or you might prefer gaze upon this detailed graph of past earnings, revenue and cash flow .

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.