Mahindra & Mahindra Limited's (NSE:M&M) CEO Compensation Is Looking A Bit Stretched At The Moment

Key Insights

• Mahindra & Mahindra's Annual General Meeting to take place on 31st of July
• CEO Anish Shah's total compensation includes salary of ₹164.9m
• The overall pay is 211% above the industry average
• Mahindra & Mahindra's EPS grew by 25% over the past three years while total shareholder return over the past three years was 191%

This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.

Under the guidance of CEO Anish Shah, Mahindra & Mahindra Limited (NSE:M&M) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 31st of July. However, some shareholders may still want to keep CEO compensation within reason.

View our latest analysis for Mahindra & Mahindra

Comparing Mahindra & Mahindra Limited's CEO Compensation With The Industry

According to our data, Mahindra & Mahindra Limited has a market capitalization of ₹3.6t, and paid its CEO total annual compensation worth ₹473m over the year to March 2025. Notably, that's an increase of 95% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at ₹165m.

On comparing similar companies in the Indian Auto industry with market capitalizations above ₹691b, we found that the median total CEO compensation was ₹152m. Accordingly, our analysis reveals that Mahindra & Mahindra Limited pays Anish Shah north of the industry median. What's more, Anish Shah holds ₹540m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Talking in terms of the industry, salary represented approximately 65% of total compensation out of all the companies we analyzed, while other remuneration made up 35% of the pie. It's interesting to note that Mahindra & Mahindra allocates a smaller portion of compensation to salary in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at Mahindra & Mahindra Limited's Growth Numbers

Mahindra & Mahindra Limited has seen its earnings per share (EPS) increase by 25% a year over the past three years. In the last year, its revenue is up 14%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Mahindra & Mahindra Limited Been A Good Investment?

Boasting a total shareholder return of 191% over three years, Mahindra & Mahindra Limited has done well by shareholders. 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...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. That's why we did our research, and identified 2 warning signs for Mahindra & Mahindra (of which 1 is a bit concerning!) that you should know about in order to have a holistic understanding of the stock.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.