【is 1337 down】Does Max Financial Services Limited’s (NSE:MFSL) CEO Salary Compare Well With Others?

Mohit Talwar has been the CEO of Max Financial Services Limited (

NSE:MFSL

) since 2016. This is 1337 downanalysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we’ll consider growth that the business demonstrates. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.

Check out our latest analysis for Max Financial Services

How Does Mohit Talwar’s Compensation Compare With Similar Sized Companies?

According to our data, Max Financial Services Limited has a market capitalization of ₹119b, and pays its CEO total annual compensation worth ₹144m. (This figure is for the year to 2018). While we always look at total compensation first, we note that the salary component is less, at ₹33m. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of ₹70b to ₹224b. The median total CEO compensation was ₹35m.

As you can see, Mohit Talwar is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Max Financial Services 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.

You can see a visual representation of the CEO compensation at Max Financial Services, below.

NSEI:MFSL CEO Compensation January 3rd 19

Is Max Financial Services Limited Growing?

Over the last three years Max Financial Services Limited has grown its earnings per share (EPS) by an average of 6.1% per year. It achieved revenue growth of 7.6% over the last year.

I’d prefer higher revenue growth, but it is good to see modest EPS growth. Considering these factors I’d say performance has been pretty decent, though not amazing.

You might want to check

this free visual report on

analyst forecasts

for future earnings

.

Has Max Financial Services Limited Been A Good Investment?

Given the total loss of 16% over three years, many shareholders in Max Financial Services Limited are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary…

We compared the total CEO remuneration paid by Max Financial Services Limited, and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.

Over the last three years, shareholder returns have been downright disappointing, and the underlying business has failed to impress us. Shareholders may wish to consider further research. Although we don’t think the CEO pay is too high, it is probably more on the generous side of things. Whatever your view on compensation, you might want to

check if insiders are buying or selling Max Financial Services shares (free trial).

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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

[email protected]

.

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