Should You Worry About Weizmann Limited's (NSE:WEIZMANIND) CEO Salary Level?

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Neelkamal Siraj became the CEO of Weizmann Limited (NSE:WEIZMANIND) in 2016. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.

View our latest analysis for Weizmann

How Does Neelkamal Siraj's Compensation Compare With Similar Sized Companies?

Our data indicates that Weizmann Limited is worth ₹569m, and total annual CEO compensation is ₹5.0m. (This is based on the year to March 2018). It is worth noting that the CEO compensation consists almost entirely of the salary, worth ₹5.0m. We took a group of companies with market capitalizations below ₹14b, and calculated the median CEO total compensation to be ₹1.3m.

It would therefore appear that Weizmann Limited pays Neelkamal Siraj 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. We can better assess whether the pay is overly generous by looking into the underlying business performance.

The graphic below shows how CEO compensation at Weizmann has changed from year to year.

NSEI:WEIZMANIND CEO Compensation, July 18th 2019
NSEI:WEIZMANIND CEO Compensation, July 18th 2019

Is Weizmann Limited Growing?

Weizmann Limited has increased its earnings per share (EPS) by an average of 16% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 19%.

This shows that the company has improved itself over the last few years. Good news for shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. 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 Weizmann Limited Been A Good Investment?

I think that the total shareholder return of 46%, over three years, would leave most Weizmann 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...

We compared total CEO remuneration at Weizmann 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.