【the rock church pinellas county florida】How Should Investors Feel About Nelco Limited’s (NSE:NELCO) CEO Pay?

In 2011 Pradip Nath was appointed CEO of Nelco Limited (

NSE:NELCO

). This the rock church pinellas county floridaanalysis 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.

See our latest analysis for Nelco

How Does Pradip Nath’s Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Nelco Limited has a market cap of ₹5.3b, and is paying total annual CEO compensation of ₹17m. (This number is for the twelve months until March 2018). While we always look at total compensation first, we note that the salary component is less, at ₹5.3m. We examined a group of similar sized companies, with market capitalizations of below ₹14b. The median CEO compensation in that group is ₹1.5m.

As you can see, Pradip Nath is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Nelco 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.

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

NSEI:NELCO CEO Compensation, March 1st 2019

Is Nelco Limited Growing?

Over the last three years Nelco Limited has grown its earnings per share (EPS) by an average of 64% per year (using a line of best fit). 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. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Although we don’t have analyst forecasts, you might want to assess

this data-rich visualization

of earnings, revenue and cash flow.

Has Nelco Limited Been A Good Investment?

Most shareholders would probably be pleased with Nelco Limited for providing a total return of 191% over three years. This strong performance might mean some shareholders don’t mind if the CEO were to be paid more than is normal for a company of its size.

In Summary…

We compared total CEO remuneration at Nelco Limited with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.

However, the earnings per share growth over three years is certainly impressive. Even better, returns to shareholders have been plentiful, over the same time period. So, considering this good performance, the CEO compensation may be quite appropriate. Shareholders may want to

check for free if Nelco insiders are buying or selling shares.

Story continues

Important note:

Nelco may not be the best stock to buy. You might find something

better

in

this list of interesting companies with high ROE and low debt.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at

[email protected]

. 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.

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