In This Article:
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Rajesh Parikh has been the CEO of 20 Microns Limited (NSE:20MICRONS) since 2014. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
Check out our latest analysis for 20 Microns
How Does Rajesh Parikh's Compensation Compare With Similar Sized Companies?
Our data indicates that 20 Microns Limited is worth ₹1.4b, and total annual CEO compensation is ₹4.9m. (This is based on the year to March 2018). We think total compensation is more important but we note that the CEO salary is lower, at ₹3.8m. We looked at a group of companies with market capitalizations under ₹14b, and the median CEO total compensation was ₹1.2m.
It would therefore appear that 20 Microns Limited pays Rajesh Parikh 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. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see, below, how CEO compensation at 20 Microns has changed over time.
Is 20 Microns Limited Growing?
On average over the last three years, 20 Microns Limited has grown earnings per share (EPS) by 25% each year (using a line of best fit). In the last year, its revenue is up 12%.
This demonstrates that the company has been improving recently. A good result. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. 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 20 Microns Limited Been A Good Investment?
Most shareholders would probably be pleased with 20 Microns Limited for providing a total return of 44% over three years. 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 compared total CEO remuneration at 20 Microns Limited with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.