In This Article:
In 2009 Bharat Anumolu was appointed CEO of Beardsell Limited (NSE:BEARDSELL). First, this article will compare CEO compensation with compensation at similar sized companies. Then we’ll look at a snap shot of the business growth. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
See our latest analysis for Beardsell
How Does Bharat Anumolu’s Compensation Compare With Similar Sized Companies?
Our data indicates that Beardsell Limited is worth ₹423m, and total annual CEO compensation is ₹8.9m. (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 ₹4.2m. We looked at a group of companies with market capitalizations under ₹14b, and the median CEO compensation was ₹1.3m.
Thus we can conclude that Bharat Anumolu receives more in total compensation than the median of a group of companies in the same market, and of similar size to Beardsell 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.
You can see a visual representation of the CEO compensation at Beardsell, below.
Is Beardsell Limited Growing?
On average over the last three years, Beardsell Limited has shrunk earnings per share by 44% each year (measured with a line of best fit). Its revenue is up 12% over last year.
Unfortunately, earnings per share have trended lower over the last three years. There’s no doubt that the silver lining is that revenue is up. But it isn’t sufficiently fast growth to overlook the fact that earnings per share has gone backwards over three years. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Although we don’t have analyst forecasts, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Beardsell Limited Been A Good Investment?
Since shareholders would have lost about 11% over three years, some Beardsell 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 examined the amount Beardsell Limited pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.