In This Article:
G. Vivekanand has been the CEO of Visaka Industries Limited (NSE:VISAKAIND) since 2009. 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 method should give us information to assess how appropriately the company pays the CEO.
See our latest analysis for Visaka Industries
How Does G. Vivekanand's Compensation Compare With Similar Sized Companies?
Our data indicates that Visaka Industries Limited is worth ₹6.5b, and total annual CEO compensation is ₹57m. (This number is for the twelve months until March 2018). While we always look at total compensation first, we note that the salary component is less, at ₹7.8m. 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, G. Vivekanand is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Visaka Industries Limited is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
The graphic below shows how CEO compensation at Visaka Industries has changed from year to year.
Is Visaka Industries Limited Growing?
On average over the last three years, Visaka Industries Limited has grown earnings per share (EPS) by 39% each year (using a line of best fit). It achieved revenue growth of 12% 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 Visaka Industries Limited Been A Good Investment?
I think that the total shareholder return of 264%, over three years, would leave most Visaka Industries Limited shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
In Summary...
We examined the amount Visaka Industries Limited pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of 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 Visaka Industries (free visualization of insider trades).