In This Article:
N. V. Kamakodi became the CEO of City Union Bank Limited (NSE:CUB) in 2011. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we’ll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
View our latest analysis for City Union Bank
Want to help shape the future of investing tools and platforms? Take the survey and be part of one of the most advanced studies of stock market investors to date.
How Does N. V. Kamakodi’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that City Union Bank Limited has a market cap of ₹140b, and is paying total annual CEO compensation of ₹20m. (This number is for the twelve months until 2018). We think total compensation is more important but we note that the CEO salary is lower, at ₹7.8m. We looked at a group of companies with market capitalizations from ₹71b to ₹228b, and the median CEO compensation was ₹39m.
Most shareholders would consider it a positive that N. V. Kamakodi takes less compensation than the CEOs of most similar size companies, leaving more for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.
The graphic below shows how CEO compensation at City Union Bank has changed from year to year.
Is City Union Bank Limited Growing?
On average over the last three years, City Union Bank Limited has grown earnings per share (EPS) by 15% each year (using a line of best fit). In the last year, its revenue is up 15%.
This demonstrates that the company has been improving recently. A good result. It’s also good to see decent revenue growth in the last year, suggesting the business is healthy and growing.
You might want to check this free visual report on analyst forecasts for future earnings.
Has City Union Bank Limited Been A Good Investment?
I think that the total shareholder return of 198%, over three years, would leave most City Union Bank Limited shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary…
It appears that City Union Bank Limited remunerates its CEO below most similar sized companies. Many would consider this to indicate that the pay is modest since the business is growing. The pleasing shareholder returns are the cherry on top; you might even consider that N. V. Kamakodi deserves a raise!