In This Article:
In 2005 Yuvraj Malhotra was appointed CEO of Hilton Metal Forging Limited (NSE:HILTON). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
See our latest analysis for Hilton Metal Forging
How Does Yuvraj Malhotra's Compensation Compare With Similar Sized Companies?
According to our data, Hilton Metal Forging Limited has a market capitalization of ₹133m, and pays its CEO total annual compensation worth ₹6.0m. (This number is for the twelve months until March 2018). It is worth noting that the CEO compensation consists almost entirely of the salary, worth ₹6.0m. We looked at a group of companies with market capitalizations under ₹14b, and the median CEO total compensation was ₹1.5m.
Thus we can conclude that Yuvraj Malhotra receives more in total compensation than the median of a group of companies in the same market, and of similar size to Hilton Metal Forging 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, below, how CEO compensation at Hilton Metal Forging has changed over time.
Is Hilton Metal Forging Limited Growing?
On average over the last three years, Hilton Metal Forging Limited has grown earnings per share (EPS) by 90% each year (using a line of best fit). It saw its revenue drop -5.7% over the 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, you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Hilton Metal Forging Limited Been A Good Investment?
Since shareholders would have lost about 38% over three years, some Hilton Metal Forging Limited shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
We examined the amount Hilton Metal Forging Limited pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.