Shareholders May Be More Conservative With Omax Autos Limited's (NSE:OMAXAUTO) CEO Compensation For Now

Performance at Omax Autos Limited (NSE:OMAXAUTO) has been reasonably good and CEO Jatender Mehta has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 30 September 2022, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still want to keep CEO compensation within reason.

View our latest analysis for Omax Autos

How Does Total Compensation For Jatender Mehta Compare With Other Companies In The Industry?

According to our data, Omax Autos Limited has a market capitalization of ₹1.5b, and paid its CEO total annual compensation worth ₹27m over the year to March 2022. That's a notable increase of 98% on last year. Notably, the salary of ₹27m is the entirety of the CEO compensation.

For comparison, other companies in the industry with market capitalizations below ₹16b, reported a median total CEO compensation of ₹11m. Hence, we can conclude that Jatender Mehta is remunerated higher than the industry median. What's more, Jatender Mehta holds ₹187m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2022	2021	Proportion (2022)
Salary	₹27m	₹12m	100%
Other	-	₹1.6m	-
Total Compensation	₹27m	₹13m	100%

On an industry level, roughly 79% of total compensation represents salary and 21% is other remuneration. At the company level, Omax Autos pays Jatender Mehta solely through a salary, preferring to go down a conventional route. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Omax Autos Limited's Growth

Omax Autos Limited has reduced its earnings per share by 4.9% a year over the last three years. In the last year, its revenue is up 41%.

The decrease in EPS could be a concern for some investors. But on the other hand, revenue growth is strong, suggesting a brighter future. It's hard to reach a conclusion about business performance right now. This may be one to watch. 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 Omax Autos Limited Been A Good Investment?

Most shareholders would probably be pleased with Omax Autos Limited for providing a total return of 77% 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.

To Conclude...

Omax Autos rewards its CEO solely through a salary, ignoring non-salary benefits completely. The overall company performance has been commendable, however there are still areas for improvement. EPS growth is still weak, and until that picks up, shareholders may find it hard to approve a pay rise for the CEO, since they are already paid above the average in their industry.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We did our research and identified 3 warning signs (and 1 which makes us a bit uncomfortable) in Omax Autos we think you should know about.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.