In This Article:
Bal Choudhary became the CEO of Vardhman Acrylics Limited (NSE:VARDHACRLC) in 2008. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
View our latest analysis for Vardhman Acrylics
How Does Bal Choudhary's Compensation Compare With Similar Sized Companies?
Our data indicates that Vardhman Acrylics Limited is worth ₹2.9b, and total annual CEO compensation was reported as ₹8.5m for the year to March 2019. While we always look at total compensation first, we note that the salary component is less, at ₹5.3m. We looked at a group of companies with market capitalizations under ₹14b, and the median CEO total compensation was ₹2.4m.
As you can see, Bal Choudhary is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Vardhman Acrylics 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 Vardhman Acrylics has changed from year to year.
Is Vardhman Acrylics Limited Growing?
Over the last three years Vardhman Acrylics Limited has grown its earnings per share (EPS) by an average of 6.8% per year (using a line of best fit). Its revenue is up 5.6% over last year.
I would argue that the improvement in revenue isn't particularly impressive, but I'm happy with the modest EPS growth. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. Although we don't have analyst forecasts you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Vardhman Acrylics Limited Been A Good Investment?
Since shareholders would have lost about 17% over three years, some Vardhman Acrylics 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 compared total CEO remuneration at Vardhman Acrylics Limited with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.
Over the last three years, shareholder returns have been downright disappointing, and the underlying business has failed to impress us. Considering this, we have the opinion that the CEO pay is more on the generous side, than the modest side. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Vardhman Acrylics.