Shareholders May Be More Conservative With Jay Bharat Maruti Limited's (NSE:JAYBARMARU) CEO Compensation For Now

CEO Surendra Arya has done a decent job of delivering relatively good performance at Jay Bharat Maruti Limited (NSE:JAYBARMARU) recently. As shareholders go into the upcoming AGM on 26 September 2022, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still want to keep CEO compensation within reason.

Check out our latest analysis for Jay Bharat Maruti

Comparing Jay Bharat Maruti Limited's CEO Compensation With The Industry

At the time of writing, our data shows that Jay Bharat Maruti Limited has a market capitalization of ₹7.5b, and reported total annual CEO compensation of ₹68m for the year to March 2022. We note that's an increase of 96% above last year. In particular, the salary of ₹64.9m, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the industry with market capitalizations under ₹16b, the reported median total CEO compensation was ₹11m. This suggests that Surendra Arya is paid more than the median for the industry. What's more, Surendra Arya holds ₹109m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2022	2021	Proportion (2022)
Salary	₹65m	₹32m	96%
Other	₹2.7m	₹2.0m	4%
Total Compensation	₹68m	₹34m	100%

Speaking on an industry level, nearly 79% of total compensation represents salary, while the remainder of 21% is other remuneration. Jay Bharat Maruti pays a high salary, concentrating more on this aspect of compensation in comparison to non-salary pay. 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 Jay Bharat Maruti Limited's Growth Numbers

Over the last three years, Jay Bharat Maruti Limited has shrunk its earnings per share by 11% per year. Its revenue is up 21% over the last year.

Investors would be a bit wary of companies that have lower EPS But in contrast the revenue growth is strong, suggesting future potential for EPS growth. It's hard to reach a conclusion about business performance right now. This may be one to watch. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Jay Bharat Maruti Limited Been A Good Investment?

We think that the total shareholder return of 100%, over three years, would leave most Jay Bharat Maruti Limited shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

Jay Bharat Maruti pays its CEO a majority of compensation through a salary. Although the company has performed relatively well, we still think there are some areas that could be improved. EPS growth is still weak, and until that picks up, shareholders may find it hard to approve a pay rise for the CEO, since they are already paid above the average in their industry.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. In our study, we found 5 warning signs for Jay Bharat Maruti you should be aware of, and 2 of them can't be ignored.

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.