Shareholders May Be More Conservative With Minda Corporation Limited's (NSE:MINDACORP) CEO Compensation For Now

Key Insights

• Minda to hold its Annual General Meeting on 22nd of August
• Salary of ₹30.0m is part of CEO Ashok Minda's total remuneration
• Total compensation is 74% above industry average
• Minda's total shareholder return over the past three years was 123% while its EPS grew by 2.6% over the past three years

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CEO Ashok Minda has done a decent job of delivering relatively good performance at Minda Corporation Limited (NSE:MINDACORP) recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 22nd of August. However, some shareholders may still want to keep CEO compensation within reason.

View our latest analysis for Minda

How Does Total Compensation For Ashok Minda Compare With Other Companies In The Industry?

According to our data, Minda Corporation Limited has a market capitalization of ₹117b, and paid its CEO total annual compensation worth ₹122m over the year to March 2025. That's a fairly small increase of 5.4% over the previous year. While we always look at total compensation first, our analysis shows that the salary component is less, at ₹30m.

On comparing similar companies from the Indian Auto Components industry with market caps ranging from ₹87b to ₹280b, we found that the median CEO total compensation was ₹70m. Hence, we can conclude that Ashok Minda is remunerated higher than the industry median. What's more, Ashok Minda holds ₹57b worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Speaking on an industry level, nearly 78% of total compensation represents salary, while the remainder of 22% is other remuneration. Minda sets aside a smaller share of compensation for salary, in comparison to the overall 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 Minda Corporation Limited's Growth Numbers

Minda Corporation Limited has seen its earnings per share (EPS) increase by 2.6% a year over the past three years. In the last year, its revenue is up 10%.

This revenue growth could really point to a brighter future. And, while modest, the EPS growth is noticeable. Although we'll stop short of calling the stock a top performer, we think the company has potential. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Minda Corporation Limited Been A Good Investment?

We think that the total shareholder return of 123%, over three years, would leave most Minda Corporation Limited shareholders smiling. 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.

In Summary...

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, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

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 Minda that investors should think about before committing capital to this stock.

Important note: Minda is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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.