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The CEO of Action Construction Equipment Limited (NSE:ACE) is Vijay Agarwal. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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.
See our latest analysis for Action Construction Equipment
How Does Vijay Agarwal's Compensation Compare With Similar Sized Companies?
According to our data, Action Construction Equipment Limited has a market capitalization of ₹10b, and pays its CEO total annual compensation worth ₹29m. (This is based on the year to March 2018). While we always look at total compensation first, we note that the salary component is less, at ₹27m. We looked at a group of companies with market capitalizations under ₹14b, and the median CEO total compensation was ₹1.3m.
Thus we can conclude that Vijay Agarwal receives more in total compensation than the median of a group of companies in the same market, and of similar size to Action Construction Equipment 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 Action Construction Equipment, below.
Is Action Construction Equipment Limited Growing?
Over the last three years Action Construction Equipment Limited has grown its earnings per share (EPS) by an average of 53% per year (using a line of best fit). It achieved revenue growth of 24% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. It could be important to check this free visual depiction of what analysts expect for the future.
Has Action Construction Equipment Limited Been A Good Investment?
Boasting a total shareholder return of 97% over three years, Action Construction Equipment Limited has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
We compared total CEO remuneration at Action Construction Equipment 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.