In 2002 Dipali Goenka was appointed CEO of Welspun India Limited (NSE:WELSPUNIND). First, this article will compare CEO compensation with compensation at similar sized companies. 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.
View our latest analysis for Welspun India
How Does Dipali Goenka's Compensation Compare With Similar Sized Companies?
Our data indicates that Welspun India Limited is worth ₹50b, and total annual CEO compensation is ₹35m. (This is based on the year to March 2019). That's less than last year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at ₹20m. We examined companies with market caps from ₹28b to ₹114b, and discovered that the median CEO total compensation of that group was ₹26m.
Thus we can conclude that Dipali Goenka receives more in total compensation than the median of a group of companies in the same market, and of similar size to Welspun India Limited. However, this doesn't necessarily mean the pay 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 Welspun India, below.
Is Welspun India Limited Growing?
Over the last three years Welspun India Limited has shrunk its earnings per share by an average of 20% per year (measured with a line of best fit). Its revenue is up 11% over last year.
Unfortunately, earnings per share have trended lower over the last three years. There's no doubt that the silver lining is that revenue is up. But it isn't sufficiently fast growth to overlook the fact that earnings per share has gone backwards over three years. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. You might want to check this free visual report on analyst forecasts for future earnings.
Has Welspun India Limited Been A Good Investment?
Since shareholders would have lost about 53% over three years, some Welspun India Limited shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
We compared the total CEO remuneration paid by Welspun India Limited, and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group.