In This Article:
Vinay Chopra has been the CEO of De Nora India Limited (NSE:DENORA) since 2016. 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. This process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for De Nora India
How Does Vinay Chopra’s Compensation Compare With Similar Sized Companies?
According to our data, De Nora India Limited has a market capitalization of ₹1.6b, and pays its CEO total annual compensation worth ₹4.5m. (This figure is for the year to March 2018). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at ₹2.5m. We took a group of companies with market capitalizations below ₹14b, and calculated the median CEO compensation to be ₹1.3m.
It would therefore appear that De Nora India Limited pays Vinay Chopra 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 a visual representation of the CEO compensation at De Nora India, below.
Is De Nora India Limited Growing?
De Nora India Limited has reduced its earnings per share by an average of 38% a year, over the last three years (measured with a line of best fit). It achieved revenue growth of 12% over the last year.
Unfortunately, earnings per share have trended lower over the last three years. And while it’s good to see some good revenue growth recently, the growth isn’t really fast enough for me to put aside my concerns around earnings. It’s hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Although we don’t have analyst forecasts, you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has De Nora India Limited Been A Good Investment?
Since shareholders would have lost about 6.7% over three years, some De Nora India Limited shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
In Summary…
We examined the amount De Nora India 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.