In This Article:
Gautam Mehra became the CEO of Savita Oil Technologies Limited (NSE:SOTL) in 2012. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we’ll consider growth that the business demonstrates. 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.
See our latest analysis for Savita Oil Technologies
How Does Gautam Mehra’s Compensation Compare With Similar Sized Companies?
According to our data, Savita Oil Technologies Limited has a market capitalization of ₹15.3b, and pays its CEO total annual compensation worth ₹26m. Notably, that’s an increase of 17% over the year before. We examined companies with market caps from ₹7.3b to ₹29.3b, and discovered that the median CEO compensation of that group was ₹17m.
As you can see, Gautam Mehra is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Savita Oil Technologies Limited is paying too much. 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 Savita Oil Technologies has changed over time.
Is Savita Oil Technologies Limited Growing?
On average over the last three years, Savita Oil Technologies Limited has grown earnings per share (EPS) by 62% each year. It achieved revenue growth of 21% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. IThis sort of respectable year-on-year revenue growth is often seen at a healthy, growing business.
It could be important to check this free visual depiction of what analysts expect for the future.
Has Savita Oil Technologies Limited Been A Good Investment?
Most shareholders would probably be pleased with Savita Oil Technologies Limited for providing a total return of 79% over three years. 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…
We compared total CEO remuneration at Savita Oil Technologies 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.
However we must not forget that the EPS growth has been very strong over three years. Even better, returns to shareholders have been plentiful, over the same time period. As a result of this good performance, the CEO remuneration may well be quite reasonable. Whatever your view on compensation, you might want to check if insiders are buying or selling Savita Oil Technologies Limited shares (free trial).