In This Article:
Arvind Kumar Poddar became the CEO of Balkrishna Industries Limited (NSE:BALKRISIND) in 2006. 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. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
Check out our latest analysis for Balkrishna Industries
How Does Arvind Kumar Poddar's Compensation Compare With Similar Sized Companies?
Our data indicates that Balkrishna Industries Limited is worth ₹139b, and total annual CEO compensation is ₹295m. (This figure is for the year to March 2019). That's actually a decrease on the year before. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at ₹30m. We examined companies with market caps from ₹69b to ₹220b, and discovered that the median CEO total compensation of that group was ₹42m.
It would therefore appear that Balkrishna Industries Limited pays Arvind Kumar Poddar 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 Balkrishna Industries has changed over time.
Is Balkrishna Industries Limited Growing?
On average over the last three years, Balkrishna Industries 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 17%.
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. It could be important to check this free visual depiction of what analysts expect for the future.
Has Balkrishna Industries Limited Been A Good Investment?
I think that the total shareholder return of 102%, over three years, would leave most Balkrishna Industries Limited shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
In Summary...
We examined the amount Balkrishna Industries Limited pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.