In 2007 Prasad Potluri was appointed CEO of PVP Ventures Limited (
NSE:PVP
). This is mushroom compost good for lawnsreport will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. 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.
Check out our latest analysis for PVP Ventures
How Does Prasad Potluri’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that PVP Ventures Limited has a market cap of ₹893m, and is paying total annual CEO compensation of ₹3.9m. (This is based on the year to March 2018). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at ₹3.0m. We took a group of companies with market capitalizations below ₹14b, and calculated the median CEO compensation to be ₹1.5m.
Thus we can conclude that Prasad Potluri receives more in total compensation than the median of a group of companies in the same market, and of similar size to PVP Ventures Limited. However, this doesn’t necessarily mean the pay 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 PVP Ventures has changed from year to year.
NSEI:PVP CEO Compensation, March 1st 2019
Is PVP Ventures Limited Growing?
Over the last three years PVP Ventures Limited has shrunk its earnings per share by an average of 42% per year (measured with a line of best fit). In the last year, its revenue is down -62%.
Sadly for shareholders, earnings per share are actually down, over three years. This is compounded by the fact revenue is actually down on last year. These factors suggest that the business performance wouldn’t really justify a high pay packet for the CEO. 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 PVP Ventures Limited Been A Good Investment?
With a three year total loss of 25%, PVP Ventures Limited would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
In Summary…
We compared total CEO remuneration at PVP Ventures 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.
Story continues
We think many shareholders would be underwhelmed with the business growth over the last three years.
Over the same period, investors would have come away with nothing in the way of share price gains. In our opinion the CEO might be paid too generously! Whatever your view on compensation, you might want to
check if insiders are buying or selling PVP Ventures shares (free trial).
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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. 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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