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In 2007 Surendrakumar Tibrewala was appointed CEO of Fineotex Chemical Limited (NSE:FCL). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. 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.
Check out our latest analysis for Fineotex Chemical
How Does Surendrakumar Tibrewala's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Fineotex Chemical Limited has a market cap of ₹3.5b, and is paying total annual CEO compensation of ₹5.8m. (This number is for the twelve months until March 2018). While we always look at total compensation first, we note that the salary component is less, at ₹5.3m. We examined a group of similar sized companies, with market capitalizations of below ₹14b. The median CEO total compensation in that group is ₹1.3m.
Thus we can conclude that Surendrakumar Tibrewala receives more in total compensation than the median of a group of companies in the same market, and of similar size to Fineotex Chemical Limited. However, this doesn't necessarily mean the pay is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
The graphic below shows how CEO compensation at Fineotex Chemical has changed from year to year.
Is Fineotex Chemical Limited Growing?
Fineotex Chemical Limited has increased its earnings per share (EPS) by an average of 9.5% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 22%.
This revenue growth could really point to a brighter future. And the improvement in earnings per share is modest but respectable. So while we'd stop just short of calling this a top performer, but we think it is well worth watching. 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 Fineotex Chemical Limited Been A Good Investment?
With a total shareholder return of 13% over three years, Fineotex Chemical Limited shareholders would, in general, be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.