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Saurabh Malhotra is the CEO of Sakuma Exports Limited (NSE:SAKUMA). 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.
See our latest analysis for Sakuma Exports
How Does Saurabh Malhotra's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Sakuma Exports Limited has a market cap of ₹3.7b, and is paying total annual CEO compensation of ₹7.2m. (This number is for the twelve months until March 2018). Notably, the salary of ₹7.2m is the vast majority of the CEO compensation. We looked at a group of companies with market capitalizations under ₹14b, and the median CEO total compensation was ₹1.3m.
It would therefore appear that Sakuma Exports Limited pays Saurabh Malhotra 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 Sakuma Exports has changed over time.
Is Sakuma Exports Limited Growing?
Sakuma Exports Limited has increased its earnings per share (EPS) by an average of 17% a year, over the last three years (using a line of best fit). It saw its revenue drop -4.0% over the last year.
This demonstrates that the company has been improving recently. A good result. Revenue growth is a real positive for growth, but ultimately profits are more important. You might want to check this free visual report on analyst forecasts for future earnings.
Has Sakuma Exports Limited Been A Good Investment?
Most shareholders would probably be pleased with Sakuma Exports Limited for providing a total return of 147% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
In Summary...
We examined the amount Sakuma Exports 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.
However, the earnings per share growth over three years is certainly impressive. In addition, shareholders have done well over the same time period. So, considering this good performance, the CEO compensation may be quite appropriate. So you may want to check if insiders are buying Sakuma Exports shares with their own money (free access).