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In 1986 Chander Baljee was appointed CEO of Royal Orchid Hotels Limited (NSE:ROHLTD). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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 Royal Orchid Hotels
How Does Chander Baljee's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Royal Orchid Hotels Limited has a market cap of ₹2.5b, and is paying total annual CEO compensation of ₹21m. (This number is for the twelve months until March 2018). It is worth noting that the CEO compensation consists almost entirely of the salary, worth ₹21m. We examined a group of similar sized companies, with market capitalizations of below ₹14b. The median CEO total compensation in that group is ₹1.3m.
As you can see, Chander Baljee is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Royal Orchid Hotels Limited is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see a visual representation of the CEO compensation at Royal Orchid Hotels, below.
Is Royal Orchid Hotels Limited Growing?
Royal Orchid Hotels Limited has increased its earnings per share (EPS) by an average of 94% a year, over the last three years (using a line of best fit). It achieved revenue growth of 7.4% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. It could be important to check this free visual depiction of what analysts expect for the future.
Has Royal Orchid Hotels Limited Been A Good Investment?
Royal Orchid Hotels Limited has not done too badly by shareholders, with a total return of 9.6%, over three years. 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 compared total CEO remuneration at Royal Orchid Hotels 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.