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Baba Kalyani became the CEO of Bharat Forge Limited (NSE:BHARATFORG) in 1970. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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. This process should give us an idea about how appropriately the CEO is paid.
Check out our latest analysis for Bharat Forge
How Does Baba Kalyani's Compensation Compare With Similar Sized Companies?
According to our data, Bharat Forge Limited has a market capitalization of ₹217b, and pays its CEO total annual compensation worth ₹186m. (This figure is for the year to March 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at ₹69m. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of ₹138b to ₹443b. The median total CEO compensation was ₹42m.
It would therefore appear that Bharat Forge Limited pays Baba Kalyani 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 get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see, below, how CEO compensation at Bharat Forge has changed over time.
Is Bharat Forge Limited Growing?
Over the last three years Bharat Forge Limited has grown its earnings per share (EPS) by an average of 15% per year (using a line of best fit). It achieved revenue growth of 21% over the last year.
This demonstrates that the company has been improving recently. A good result. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Shareholders might be interested in this free visualization of analyst forecasts.
Has Bharat Forge Limited Been A Good Investment?
Bharat Forge Limited has generated a total shareholder return of 26% over three years, so most shareholders would be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.
In Summary...
We examined the amount Bharat Forge 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.