In This Article:
The CEO of KRBL Limited (NSE:KRBL) is Anil Mittal. 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 we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
See our latest analysis for KRBL
How Does Anil Mittal's Compensation Compare With Similar Sized Companies?
Our data indicates that KRBL Limited is worth ₹77b, and total annual CEO compensation is ₹9.9m. (This is based on the year to March 2018). Notably, the salary of ₹9.8m is the vast majority of the CEO compensation. We looked at a group of companies with market capitalizations from ₹28b to ₹111b, and the median CEO total compensation was ₹25m.
Most shareholders would consider it a positive that Anil Mittal takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. Though positive, it's important we delve into the performance of the actual business.
You can see, below, how CEO compensation at KRBL has changed over time.
Is KRBL Limited Growing?
On average over the last three years, KRBL Limited has grown earnings per share (EPS) by 13% each year (using a line of best fit). Its revenue is up 16% over 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. Shareholders might be interested in this free visualization of analyst forecasts.
Has KRBL Limited Been A Good Investment?
I think that the total shareholder return of 59%, over three years, would leave most KRBL Limited shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
KRBL Limited is currently paying its CEO below what is normal for companies of its size. Considering the underlying business is growing earnings, this would suggest the pay is modest. And given most shareholders are probably very happy with recent returns, you might even think that Anil Mittal deserves a raise!
Most shareholders like to see a modestly paid CEO combined with strong performance by the company. But it is even better if company insiders are also buying shares with their own money. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at KRBL.