In This Article:
Y. Lodha became the CEO of Universal Cables Limited (NSE:UNIVCABLES) in 2015. First, this article will compare CEO compensation with compensation at similar sized companies. 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.
See our latest analysis for Universal Cables
How Does Y. Lodha's Compensation Compare With Similar Sized Companies?
Our data indicates that Universal Cables Limited is worth ₹5.1b, and total annual CEO compensation is ₹9.3m. (This is based on the year to March 2019). We note that's an increase of 22% above last year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at ₹6.8m. We took a group of companies with market capitalizations below ₹14b, and calculated the median CEO total compensation to be ₹1.4m.
As you can see, Y. Lodha is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Universal Cables Limited is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.
The graphic below shows how CEO compensation at Universal Cables has changed from year to year.
Is Universal Cables Limited Growing?
Over the last three years Universal Cables Limited has grown its earnings per share (EPS) by an average of 60% per year (using a line of best fit). Its revenue is up 20% over 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. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Universal Cables Limited Been A Good Investment?
I think that the total shareholder return of 81%, over three years, would leave most Universal Cables Limited shareholders smiling. 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 compared total CEO remuneration at Universal Cables Limited with the amount paid at companies with a similar market capitalization. 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. On top of that, in the same period, returns to shareholders have been great. So, considering this good performance, the CEO compensation may be quite appropriate. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Universal Cables (free visualization of insider trades).