In This Article:
Satish Bhat became the CEO of Ador Welding Limited (NSE:ADORWELD) in 2012. 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. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
View our latest analysis for Ador Welding
Want to help shape the future of investing tools? Participate in a short research study and receive a subscription valued at $60.
How Does Satish Bhat’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Ador Welding Limited has a market cap of ₹4.4b, and is paying total annual CEO compensation of ₹16m. (This figure is for the year to 2018). We think total compensation is more important but we note that the CEO salary is lower, at ₹12m. We took a group of companies with market capitalizations below ₹14b, and calculated the median CEO compensation to be ₹1.5m.
As you can see, Satish Bhat is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Ador Welding Limited is paying too much. 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 Ador Welding has changed from year to year.
Is Ador Welding Limited Growing?
Ador Welding Limited has reduced its earnings per share by an average of 20% a year, over the last three years. It achieved revenue growth of 3.6% over the last year.
Sadly for shareholders, earnings per share are actually down, over three years. And the modest revenue growth over 12 months isn’t much comfort against the reduced earnings per share. It’s hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration.
We don’t have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Ador Welding Limited Been A Good Investment?
I think that the total shareholder return of 35%, over three years, would leave most Ador Welding Limited shareholders smiling. This strong performance might mean some shareholders don’t mind if the CEO were to be paid more than is normal for a company of its size.