In This Article:
The CEO of KEI Industries Limited (NSE:KEI) is Anil Gupta. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we’ll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
View our latest analysis for KEI Industries
How Does Anil Gupta’s Compensation Compare With Similar Sized Companies?
Our data indicates that KEI Industries Limited is worth ₹32b, and total annual CEO compensation is ₹108m. (This figure is for the year to March 2018). While we always look at total compensation first, we note that the salary component is less, at ₹30m. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of ₹14b to ₹55b. The median total CEO compensation was ₹21m.
Thus we can conclude that Anil Gupta receives more in total compensation than the median of a group of companies in the same market, and of similar size to KEI Industries Limited. However, this doesn’t necessarily mean the pay 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 KEI Industries has changed from year to year.
Is KEI Industries Limited Growing?
KEI Industries Limited has increased its earnings per share (EPS) by an average of 52% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 32%.
This shows that the company has improved itself over the last few years. Good news for shareholders. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see. It could be important to check this free visual depiction of what analysts expect for the future.
Has KEI Industries Limited Been A Good Investment?
Boasting a total shareholder return of 323% over three years, KEI Industries Limited has done well by shareholders. 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.
In Summary…
We compared the total CEO remuneration paid by KEI Industries Limited, and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. On top of that, in the same period, returns to shareholders have been great. So, considering this good performance, the CEO compensation may be quite appropriate. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling KEI Industries (free visualization of insider trades).