In This Article:
Amit Sarin has been the CEO of Anant Raj Limited (NSE:ANANTRAJ) since 2009. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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. This method should give us information to assess how appropriately the company pays the CEO.
See our latest analysis for Anant Raj
How Does Amit Sarin's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Anant Raj Limited has a market cap of ₹9.3b, and is paying total annual CEO compensation of ₹7.2m. (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 ₹4.8m. We examined a group of similar sized companies, with market capitalizations of below ₹14b. The median CEO total compensation in that group is ₹1.3m.
It would therefore appear that Anant Raj Limited pays Amit Sarin 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 Anant Raj has changed over time.
Is Anant Raj Limited Growing?
On average over the last three years, Anant Raj Limited has shrunk earnings per share by 1.5% each year (measured with a line of best fit). In the last year, its revenue is up 2.6%.
The lack of earnings per share growth in the last three years is unimpressive. The modest increase in revenue in the last year isn't enough to make me overlook the disappointing change in earnings per share. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Anant Raj Limited Been A Good Investment?
With a three year total loss of 14%, Anant Raj Limited would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
We compared the total CEO remuneration paid by Anant Raj 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.