It May Be Possible That Menon Bearings Limited's (NSE:MENONBE) CEO Compensation Could Get Bumped Up

Key Insights

• Menon Bearings to hold its Annual General Meeting on 28th of August
• CEO Ramesh Dixit's total compensation includes salary of ₹4.57m
• Total compensation is 52% below industry average
• Menon Bearings' total shareholder return over the past three years was 46% while its EPS grew by 0.5% over the past three years

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Shareholders will probably not be disappointed by the robust results at Menon Bearings Limited (NSE:MENONBE) recently and they will be keeping this in mind as they go into the AGM on 28th of August. The focus will probably be on the future strategic initiatives that the board and management will put in place to improve the business rather than executive remuneration when they cast their votes on company resolutions. We have prepared some analysis below and we show why we think CEO compensation looks decent with even the possibility for a raise.

View our latest analysis for Menon Bearings

How Does Total Compensation For Ramesh Dixit Compare With Other Companies In The Industry?

At the time of writing, our data shows that Menon Bearings Limited has a market capitalization of ₹7.3b, and reported total annual CEO compensation of ₹5.0m for the year to March 2025. We note that's a small decrease of 6.3% on last year. Notably, the salary which is ₹4.57m, represents most of the total compensation being paid.

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 ₹10m. Accordingly, Menon Bearings pays its CEO under the industry median.

Talking in terms of the industry, salary represented approximately 78% of total compensation out of all the companies we analyzed, while other remuneration made up 22% of the pie. According to our research, Menon Bearings has allocated a higher percentage of pay to salary in comparison to the wider 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 Menon Bearings Limited's Growth Numbers

Over the last three years, Menon Bearings Limited has not seen its earnings per share change much, though there is a slight positive movement. Its revenue is up 17% over the last year.

This revenue growth could really point to a brighter future. And the improvement in EPSis modest but respectable. So while we'd stop just short of calling this a top performer, but we think it is well worth watching. 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 Menon Bearings Limited Been A Good Investment?

We think that the total shareholder return of 46%, over three years, would leave most Menon Bearings 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...

The company's overall performance, while not bad, could be better. If it continues on the same road, shareholders might feel even more confident about their investment, and have little to no objections concerning CEO pay. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 2 warning signs for Menon Bearings that investors should think about before committing capital to this stock.

Switching gears from Menon Bearings, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.