Shareholders May Not Be So Generous With Munjal Showa Limited's (NSE:MUNJALSHOW) CEO Compensation And Here's Why

Key Insights

• Munjal Showa to hold its Annual General Meeting on 20th of August
• Total pay for CEO Yogesh Munjal includes ₹33.9m salary
• The total compensation is 558% higher than the average for the industry
• Munjal Showa's EPS grew by 19% over the past three years while total shareholder return over the past three years was 39%

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Under the guidance of CEO Yogesh Munjal, Munjal Showa Limited (NSE:MUNJALSHOW) has performed reasonably well 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 20th of August. However, some shareholders may still want to keep CEO compensation within reason.

See our latest analysis for Munjal Showa

Comparing Munjal Showa Limited's CEO Compensation With The Industry

According to our data, Munjal Showa Limited has a market capitalization of ₹5.3b, and paid its CEO total annual compensation worth ₹68m over the year to March 2025. We note that's an increase of 18% above last year. In particular, the salary of ₹33.9m, makes up a fairly large portion of the total compensation being paid to the CEO.

For comparison, other companies in the Indian Auto Components industry with market capitalizations below ₹17b, reported a median total CEO compensation of ₹10m. Hence, we can conclude that Yogesh Munjal is remunerated higher than the industry median.

On an industry level, roughly 79% of total compensation represents salary and 21% is other remuneration. Munjal Showa sets aside a smaller share of compensation for salary, in comparison to the overall 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 Munjal Showa Limited's Growth Numbers

Munjal Showa Limited's earnings per share (EPS) grew 19% per year over the last three years. It achieved revenue growth of 2.5% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Munjal Showa Limited Been A Good Investment?

Most shareholders would probably be pleased with Munjal Showa Limited for providing a total return of 39% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed 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 Munjal Showa that you should be aware of before investing.

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.

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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.