In This Article:
Vimal Kejriwal has been the CEO of KEC International Limited (NSE:KEC) since 2015. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for KEC International
How Does Vimal Kejriwal's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that KEC International Limited has a market cap of ₹69b, and reported total annual CEO compensation of ₹62m for the year to March 2019. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at ₹43m. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of ₹28b to ₹114b. The median total CEO compensation was ₹26m.
As you can see, Vimal Kejriwal is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean KEC International Limited is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see, below, how CEO compensation at KEC International has changed over time.
Is KEC International Limited Growing?
Over the last three years KEC International Limited has grown its earnings per share (EPS) by an average of 27% per year (using a line of best fit). Its revenue is up 9.7% over last year.
This demonstrates that the company has been improving recently. A good result. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. You might want to check this free visual report on analyst forecasts for future earnings.
Has KEC International Limited Been A Good Investment?
Boasting a total shareholder return of 121% over three years, KEC International Limited has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
In Summary...
We examined the amount KEC International Limited pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. In addition, shareholders have done well over the same time period. As a result of this good performance, the CEO remuneration may well be quite reasonable. So you may want to check if insiders are buying KEC International shares with their own money (free access).