Yahoo Finance Does Grasim Industries Limited's (NSE:GRASIM) CEO Salary Compare Well With Others?
In 2016 Dilip Gaur was appointed CEO of Grasim Industries Limited (NSE:GRASIM). First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
View our latest analysis for Grasim Industries
How Does Dilip Gaur's Compensation Compare With Similar Sized Companies?
According to our data, Grasim Industries Limited has a market capitalization of ₹506b, and paid its CEO total annual compensation worth ₹65m over the year to March 2019. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at ₹47m. We examined companies with market caps from ₹283b to ₹850b, and discovered that the median CEO total compensation of that group was ₹84m.
So Dilip Gaur is paid around the average of the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
The graphic below shows how CEO compensation at Grasim Industries has changed from year to year.
Is Grasim Industries Limited Growing?
Over the last three years Grasim Industries Limited has shrunk its earnings per share by an average of 36% per year (measured with a line of best fit). In the last year, its revenue is up 19%.
Unfortunately, earnings per share have trended lower over the last three years. While the revenue growth is good to see, it is outweighed by the fact that earnings per share are down, over three years. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Shareholders might be interested in this free visualization of analyst forecasts.
Has Grasim Industries Limited Been A Good Investment?
With a three year total loss of 12%, Grasim Industries Limited would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
Remuneration for Dilip Gaur is close enough to the median pay for a CEO of a similar sized company .
The company isn't growing EPS, and shareholder returns have been disappointing. Suffice it to say, we don't think the CEO is underpaid! CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Grasim Industries (free visualization of insider trades).
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
