Balram Garg has been the CEO of PC Jeweller Limited (NSE:PCJEWELLER) since 2005. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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 PC Jeweller
How Does Balram Garg’s Compensation Compare With Similar Sized Companies?
Our data indicates that PC Jeweller Limited is worth ₹15b, and total annual CEO compensation is ₹72m. (This is based on the year to March 2018). Notably, the salary of ₹72m is the vast majority of the CEO compensation. We looked at a group of companies with market capitalizations from ₹6.9b to ₹28b, and the median CEO total compensation was ₹18m.
As you can see, Balram Garg is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean PC Jeweller Limited is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see, below, how CEO compensation at PC Jeweller has changed over time.
Is PC Jeweller Limited Growing?
Over the last three years PC Jeweller Limited has shrunk its earnings per share by an average of 33% per year (measured with a line of best fit). In the last year, its revenue is down -9.7%.
Sadly for shareholders, earnings per share are actually down, over three years. And the fact that revenue is down year on year arguably paints an ugly picture. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO.
Has PC Jeweller Limited Been A Good Investment?
Since shareholders would have lost about 82% over three years, some PC Jeweller Limited shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
We examined the amount PC Jeweller Limited pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
Earnings per share have not grown in three years, and the revenue growth fails to impress us.
Arguably worse, investors are without a positive return for the last three years. In our opinion the CEO might be paid too generously! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at PC Jeweller.
Important note: PC Jeweller 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 firstname.lastname@example.org. 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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