Is Pil Italica Lifestyle Limited’s (NSE:PILITA) CEO Paid At A Competitive Rate?

The CEO of Pil Italica Lifestyle Limited (NSE:PILITA) is Daud Dawood. This analysis 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.

How Does Daud Dawood’s Compensation Compare With Similar Sized Companies?

Our data indicates that Pil Italica Lifestyle Limited is worth ₹1.5b, and total annual CEO compensation is ₹4.0m. (This number is for the twelve months until March 2018). It is worth noting that the CEO compensation consists almost entirely of the salary, worth ₹4.0m. We took a group of companies with market capitalizations below ₹14b, and calculated the median CEO compensation to be ₹1.3m.

Thus we can conclude that Daud Dawood receives more in total compensation than the median of a group of companies in the same market, and of similar size to Pil Italica Lifestyle Limited. However, this doesn’t necessarily mean the pay is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.

You can see, below, how CEO compensation at Pil Italica Lifestyle has changed over time.

NSEI:PILITA CEO Compensation, March 8th 2019
NSEI:PILITA CEO Compensation, March 8th 2019

Is Pil Italica Lifestyle Limited Growing?

Pil Italica Lifestyle Limited has increased its earnings per share (EPS) by an average of 56% a year, over the last three years (using a line of best fit). Its revenue is down -21% over last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. Although we don’t have analyst forecasts, you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Pil Italica Lifestyle Limited Been A Good Investment?

I think that the total shareholder return of 117%, over three years, would leave most Pil Italica Lifestyle Limited shareholders smiling. 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 Pil Italica Lifestyle 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.

Importantly, though, the company has impressed with its earnings per share growth, over three years. In addition, shareholders have done well over the same time period. So, considering this good performance, the CEO compensation may be quite appropriate.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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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Author: Roky