In This Article:
Nikhil Merchant has been the CEO of Swan Energy Limited (NSE:SWANENERGY) since 2009. 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 method should give us information to assess how appropriately the company pays the CEO.
View our latest analysis for Swan Energy
How Does Nikhil Merchant’s Compensation Compare With Similar Sized Companies?
According to our data, Swan Energy Limited has a market capitalization of ₹25b, and pays its CEO total annual compensation worth ₹13m. (This figure is for the year to 2018). It is worth noting that the CEO compensation consists almost entirely of the salary, worth ₹13m. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of ₹14b to ₹56b. The median total CEO compensation was ₹22m.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. Though positive, it’s important we delve into the performance of the actual business.
You can see a visual representation of the CEO compensation at Swan Energy, below.
Is Swan Energy Limited Growing?
On average over the last three years, Swan Energy Limited has grown earnings per share (EPS) by 105% each year. Its revenue is down -1.1% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. Revenue growth is a real positive for growth, but ultimately profits are more important.
Although we don’t have analyst forecasts, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Swan Energy Limited Been A Good Investment?
Most shareholders would probably be pleased with Swan Energy Limited for providing a total return of 46% over three years. This strong performance might mean some shareholders don’t mind if the CEO is paid more than is normal for a company of its size.
In Summary…
It looks like Swan Energy Limited pays its CEO less than similar sized companies. Many would consider this to indicate that the pay is modest since the business is growing. And given most shareholders are probably very happy with recent returns, you might even think that Nikhil Merchant deserves a raise!
It is relatively rare to see a modestly paid CEO when performance is so impressive. It would be even more positive if company insiders are buying shares. So you may want to check if insiders are buying Swan Energy shares with their own money (free access).