Increases to CEO Compensation Might Be Put On Hold For Now at Sandhar Technologies Limited (NSE:SANDHAR)

Key Insights

• Sandhar Technologies to hold its Annual General Meeting on 21st of September
• CEO Jayant Davar's total compensation includes salary of ₹14.3m
• The total compensation is 82% higher than the average for the industry
• Sandhar Technologies' total shareholder return over the past three years was 71% while its EPS grew by 90% over the past three years

CEO Jayant Davar has done a decent job of delivering relatively good performance at Sandhar Technologies Limited (NSE:SANDHAR) recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 21st of September. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

View our latest analysis for Sandhar Technologies

Comparing Sandhar Technologies Limited's CEO Compensation With The Industry

At the time of writing, our data shows that Sandhar Technologies Limited has a market capitalization of ₹25b, and reported total annual CEO compensation of ₹50m for the year to March 2023. That's a notable increase of 9.3% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at ₹14m.

For comparison, other companies in the Indian Auto Components industry with market capitalizations ranging between ₹8.3b and ₹33b had a median total CEO compensation of ₹28m. Accordingly, our analysis reveals that Sandhar Technologies Limited pays Jayant Davar north of the industry median. Furthermore, Jayant Davar directly owns ₹14b worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2023	2022	Proportion (2023)
Salary	₹14m	₹14m	29%
Other	₹36m	₹31m	71%
Total Compensation	₹50m	₹46m	100%

Speaking on an industry level, nearly 76% of total compensation represents salary, while the remainder of 24% is other remuneration. In Sandhar Technologies' case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Sandhar Technologies Limited's Growth

Sandhar Technologies Limited's earnings per share (EPS) grew 90% per year over the last three years. Its revenue is up 18% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Sandhar Technologies Limited Been A Good Investment?

We think that the total shareholder return of 71%, over three years, would leave most Sandhar Technologies 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...

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. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 2 warning signs for Sandhar Technologies that you should be aware of before investing.

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.