We Think Autoline Industries Limited's (NSE:AUTOIND) CEO Compensation Looks Fair

Key Insights

• Autoline Industries to hold its Annual General Meeting on 25th of September
• Total pay for CEO Shivaji Akhade includes ₹6.03m salary
• Total compensation is similar to the industry average
• Autoline Industries' EPS grew by 79% over the past three years while total shareholder return over the past three years was 153%

It would be hard to discount the role that CEO Shivaji Akhade has played in delivering the impressive results at Autoline Industries Limited (NSE:AUTOIND) recently. Coming up to the next AGM on 25th of September, shareholders would be keeping this in mind. It is likely that the focus will be on company strategy going forward as shareholders hear from the board and cast their votes on resolutions such as executive remuneration and other matters. In light of the great performance, we discuss the case why we think CEO compensation is not excessive.

Check out our latest analysis for Autoline Industries

Comparing Autoline Industries Limited's CEO Compensation With The Industry

Our data indicates that Autoline Industries Limited has a market capitalization of ₹5.4b, and total annual CEO compensation was reported as ₹6.0m for the year to March 2024. This means that the compensation hasn't changed much from last year. Notably, the salary of ₹6.0m is the entirety of the CEO compensation.

On comparing similar-sized companies in the Indian Auto Components industry with market capitalizations below ₹17b, we found that the median total CEO compensation was ₹6.8m. So it looks like Autoline Industries compensates Shivaji Akhade in line with the median for the industry. What's more, Shivaji Akhade holds ₹816m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2024	2023	Proportion (2024)
Salary	₹6.0m	₹6.0m	100%
Other	-	-	-
Total Compensation	₹6.0m	₹6.0m	100%

Speaking on an industry level, nearly 76% of total compensation represents salary, while the remainder of 24% is other remuneration. On a company level, Autoline Industries prefers to reward its CEO through a salary, opting not to pay Shivaji Akhade through non-salary benefits. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Autoline Industries Limited's Growth

Over the past three years, Autoline Industries Limited has seen its earnings per share (EPS) grow by 79% per year. In the last year, its revenue is up 5.9%.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. 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 Autoline Industries Limited Been A Good Investment?

Most shareholders would probably be pleased with Autoline Industries Limited for providing a total return of 153% over three years. 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.

To Conclude...

Autoline Industries pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We did our research and identified 3 warning signs (and 1 which doesn't sit too well with us) in Autoline Industries we think you should know about.

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. 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.