Here's Why Asahi India Glass Limited's (NSE:ASAHIINDIA) CEO Compensation Is The Least Of Shareholders' Concerns

CEO Sanjay Labroo has done a decent job of delivering relatively good performance at Asahi India Glass Limited (NSE:ASAHIINDIA) recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 29 September 2021. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.

See our latest analysis for Asahi India Glass

Comparing Asahi India Glass Limited's CEO Compensation With the industry

Our data indicates that Asahi India Glass Limited has a market capitalization of ₹87b, and total annual CEO compensation was reported as ₹33m for the year to March 2021. Notably, that's a decrease of 20% over the year before. In particular, the salary of ₹19.3m, makes up a fairly large portion of the total compensation being paid to the CEO.

For comparison, other companies in the same industry with market capitalizations ranging between ₹30b and ₹118b had a median total CEO compensation of ₹29m. This suggests that Asahi India Glass remunerates its CEO largely in line with the industry average. Furthermore, Sanjay Labroo directly owns ₹6.4b worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2021	2020	Proportion (2021)
Salary	₹19m	₹27m	59%
Other	₹13m	₹13m	41%
Total Compensation	₹33m	₹41m	100%

Speaking on an industry level, nearly 77% of total compensation represents salary, while the remainder of 23% is other remuneration. Asahi India Glass pays a modest slice of remuneration through salary, as compared to the broader industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at Asahi India Glass Limited's Growth Numbers

Asahi India Glass Limited has seen its earnings per share (EPS) increase by 7.8% a year over the past three years. In the last year, its revenue is up 30%.

It's great to see that revenue growth is strong. With that in mind, the modestly improving EPS seems positive. So while we'd stop short of saying growth is absolutely outstanding, there are definitely some clear positives! Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Asahi India Glass Limited Been A Good Investment?

With a total shareholder return of 8.0% over three years, Asahi India Glass Limited has done okay by shareholders, but there's always room for improvement. Accordingly, a proposal to increase CEO remuneration without seeing an improvement in shareholder returns might not be met favorably by most shareholders.

In Summary...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. Despite the pleasing results, we still think that any proposed increases to CEO compensation will be examined based on a case by case basis and linked to performance outcomes.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 2 warning signs for Asahi India Glass that investors should think about before committing capital to this stock.

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

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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