In This Article:
Malav Dani has been the CEO of Hitech Corporation Limited (NSE:HITECHCORP) since 2012. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. 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.
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Check out our latest analysis for Hitech
How Does Malav Dani's Compensation Compare With Similar Sized Companies?
According to our data, Hitech Corporation Limited has a market capitalization of ₹1.6b, and pays its CEO total annual compensation worth ₹5.2m. (This figure is for the year to March 2018). We think total compensation is more important but we note that the CEO salary is lower, at ₹3.9m. We took a group of companies with market capitalizations below ₹14b, and calculated the median CEO total compensation to be ₹1.3m.
It would therefore appear that Hitech Corporation Limited pays Malav Dani 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 better assess whether the pay is overly generous by looking into the underlying business performance.
You can see, below, how CEO compensation at Hitech has changed over time.
Is Hitech Corporation Limited Growing?
Hitech Corporation 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 19%.
I think the revenue growth is good. And, while modest, the earnings per share growth is noticeable. So while performance isn't amazing, we think it really does seem quite respectable. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Hitech Corporation Limited Been A Good Investment?
With a three year total loss of 45%, Hitech Corporation 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 the total CEO remuneration paid by Hitech Corporation Limited, and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.