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Ashu Suyash has been the CEO of CRISIL Limited (NSE:CRISIL) since 2015. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
Check out our latest analysis for CRISIL
How Does Ashu Suyash's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that CRISIL Limited has a market cap of ₹104b, and is paying total annual CEO compensation of ₹57m. (This is based on the year to December 2018). While we always look at total compensation first, we note that the salary component is less, at ₹35m. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of ₹69b to ₹220b. The median total CEO compensation was ₹39m.
It would therefore appear that CRISIL Limited pays Ashu Suyash more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see, below, how CEO compensation at CRISIL has changed over time.
Is CRISIL Limited Growing?
Over the last three years CRISIL Limited has grown its earnings per share (EPS) by an average of 4.4% per year (using a line of best fit). In the last year, its revenue is up 4.0%.
I'm not particularly impressed by the revenue growth, but I'm happy with the modest EPS growth. Considering these factors I'd say performance has been pretty decent, though not amazing. Shareholders might be interested in this free visualization of analyst forecasts.
Has CRISIL Limited Been A Good Investment?
With a three year total loss of 28%, CRISIL Limited would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
We compared the total CEO remuneration paid by CRISIL Limited, and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
Over the last three years, shareholder returns have been downright disappointing, and the underlying business has failed to impress us. Considering this, we have the opinion that the CEO pay is more on the generous side, than the modest side. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at CRISIL.