It May Be Possible That Motherson Sumi Wiring India Limited's (NSE:MSUMI) CEO Compensation Could Get Bumped Up

Key Insights

• Motherson Sumi Wiring India will host its Annual General Meeting on 28th of August
• CEO Anurag Gahlot's total compensation includes salary of ₹11.3m
• The total compensation is 72% less than the average for the industry
• Motherson Sumi Wiring India's EPS grew by 9.4% over the past three years while total shareholder return over the past three years was 17%

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Shareholders will probably not be disappointed by the robust results at Motherson Sumi Wiring India Limited (NSE:MSUMI) recently and they will be keeping this in mind as they go into the AGM on 28th of August. They will probably be more interested in hearing the board discuss future initiatives to further improve the business as they vote on resolutions such as executive remuneration. Here is our take on why we think CEO compensation is fair and may even warrant a raise.

See our latest analysis for Motherson Sumi Wiring India

Comparing Motherson Sumi Wiring India Limited's CEO Compensation With The Industry

According to our data, Motherson Sumi Wiring India Limited has a market capitalization of ₹283b, and paid its CEO total annual compensation worth ₹21m over the year to March 2025. That's a notable increase of 15% on last year. In particular, the salary of ₹11.3m, makes up a fairly large portion of the total compensation being paid to the CEO.

On examining similar-sized companies in the Indian Auto Components industry with market capitalizations between ₹175b and ₹558b, we discovered that the median CEO total compensation of that group was ₹75m. That is to say, Anurag Gahlot is paid under the industry median. What's more, Anurag Gahlot holds ₹2.2m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2025	2024	Proportion (2025)
Salary	₹11m	₹9.8m	54%
Other	₹9.6m	₹8.3m	46%
Total Compensation	₹21m	₹18m	100%

On an industry level, roughly 78% of total compensation represents salary and 22% is other remuneration. Motherson Sumi Wiring India pays a modest slice of remuneration through salary, as compared to the broader 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 Motherson Sumi Wiring India Limited's Growth Numbers

Motherson Sumi Wiring India Limited has seen its earnings per share (EPS) increase by 9.4% a year over the past three years. It achieved revenue growth of 12% over the last year.

This revenue growth could really point to a brighter future. And, while modest, the EPS growth is noticeable. So while we'd stop just short of calling this a top performer, but we think it is well worth watching. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Motherson Sumi Wiring India Limited Been A Good Investment?

Motherson Sumi Wiring India Limited has generated a total shareholder return of 17% over three years, so most shareholders would be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

While the company seems to be headed in the right direction performance-wise, there's always room for improvement. 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. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We've identified 1 warning sign for Motherson Sumi Wiring India that investors should be aware of in a dynamic business environment.

Switching gears from Motherson Sumi Wiring India, 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.