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Arvind Singhania has been the CEO of Ester Industries Limited (NSE:ESTER) since 2015. 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 we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
Check out our latest analysis for Ester Industries
How Does Arvind Singhania's Compensation Compare With Similar Sized Companies?
Our data indicates that Ester Industries Limited is worth ₹3.0b, and total annual CEO compensation is ₹15m. (This number is for the twelve months until March 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at ₹8.0m. We examined a group of similar sized companies, with market capitalizations of below ₹14b. The median CEO total compensation in that group is ₹1.2m.
It would therefore appear that Ester Industries Limited pays Arvind Singhania 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 get a better idea of how generous the pay is by looking at the performance of the underlying business.
The graphic below shows how CEO compensation at Ester Industries has changed from year to year.
Is Ester Industries Limited Growing?
On average over the last three years, Ester Industries Limited has grown earnings per share (EPS) by 97% each year (using a line of best fit). Its revenue is up 28% over last year.
This demonstrates that the company has been improving recently. A good result. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Although we don't have analyst forecasts, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Ester Industries Limited Been A Good Investment?
With a three year total loss of 34%, Ester Industries Limited would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
We compared total CEO remuneration at Ester Industries Limited with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.