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Sandeep Verma became the CEO of Maan Aluminium Limited (NSE:MAANALU) in 2015. 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. This method should give us information to assess how appropriately the company pays the CEO.
Check out our latest analysis for Maan Aluminium
How Does Sandeep Verma's Compensation Compare With Similar Sized Companies?
Our data indicates that Maan Aluminium Limited is worth ₹554m, and total annual CEO compensation is ₹3.6m. (This is based on the year to March 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at ₹1.5m. 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 Maan Aluminium Limited pays Sandeep Verma 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 Maan Aluminium has changed over time.
Is Maan Aluminium Limited Growing?
Maan Aluminium Limited has increased its earnings per share (EPS) by an average of 60% a year, over the last three years (using a line of best fit). Its revenue is up 46% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Maan Aluminium Limited Been A Good Investment?
Most shareholders would probably be pleased with Maan Aluminium Limited for providing a total return of 432% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
We compared total CEO remuneration at Maan Aluminium 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.