In This Article:
Sanjiv Bajaj has been the CEO of Bajaj Finserv Limited (NSE:BAJAJFINSV) since 2008. This analysis aims first to contrast CEO compensation with other large companies. Next, we’ll consider growth that the business demonstrates. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
View our latest analysis for Bajaj Finserv
How Does Sanjiv Bajaj’s Compensation Compare With Similar Sized Companies?
Our data indicates that Bajaj Finserv Limited is worth ₹858.0b, and total annual CEO compensation is ₹50m. That’s just a smallish increase of 5.0% on last year. When we examined a group of companies with market caps over ₹586.0b, we found that their median CEO compensation was ₹94m.
Most shareholders would consider it a positive that Sanjiv Bajaj takes less compensation than the CEOs of most other large companies, leaving more for shareholders. While this is a good thing, you’ll need to understand the business better before you can form an opinion.
You can see a visual representation of the CEO compensation at Bajaj Finserv, below.
Is Bajaj Finserv Limited Growing?
Over the last three years Bajaj Finserv Limited has grown its earnings per share (EPS) by an average of 16% per year. It achieved revenue growth of 21% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s also good to see decent revenue growth in the last year, suggesting the business is healthy and growing.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Bajaj Finserv Limited Been A Good Investment?
I think that the total shareholder return of 195%, over three years, would leave most Bajaj Finserv Limited shareholders smiling. So they may not be at all concerned if the CEO is paid more than is normal for companies around the same size.
In Summary…
It looks like Bajaj Finserv Limited pays its CEO less than the average at large companies. Considering the underlying business is growing earnings, this would suggest the pay is modest. The strong history of shareholder returns might even have some thinking that Sanjiv Bajaj deserves a raise!
It is relatively rare to see a modestly paid CEO when performance is so impressive. The cherry on top would be if company insiders are buying shares with their own money. Whatever your view on compensation, you might want to check if insiders are buying or selling Bajaj Finserv Limited shares (free trial).