Surendrakumar Tibrewala has been the CEO of Fineotex Chemical Limited (NSE:FCL) since 2007. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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.
How Does Surendrakumar Tibrewala’s Compensation Compare With Similar Sized Companies?
According to our data, Fineotex Chemical Limited has a market capitalization of ₹3.9b, and pays its CEO total annual compensation worth ₹5.8m. (This is based on the year to 2018). We think total compensation is more important but we note that the CEO salary is lower, at ₹5.3m. We took a group of companies with market capitalizations below ₹14b, and calculated the median CEO compensation to be ₹1.5m.
As you can see, Surendrakumar Tibrewala is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Fineotex Chemical Limited is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
The graphic below shows how CEO compensation at Fineotex Chemical has changed from year to year.
Is Fineotex Chemical Limited Growing?
On average over the last three years, Fineotex Chemical Limited has grown earnings per share (EPS) by 16% each year (using a line of best fit). Its revenue is up 20% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s a real positive to see this sort of growth in a single year. That suggests a healthy and growing business.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has Fineotex Chemical Limited Been A Good Investment?
Fineotex Chemical Limited has served shareholders reasonably well, with a total return of 22% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.
In Summary…
We compared total CEO remuneration at Fineotex Chemical 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. Looking at the same time period, we think that the shareholder returns are respectable. While it may be worth researching further, we don’t see a problem with the CEO pay, given the good EPS growth. So you may want to check if insiders are buying Fineotex Chemical shares with their own money (free access).
Of course, the past can be informative so you might be interested in considering this analytical visualization showing the company history of earnings and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
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