Increases to CEO Compensation Might Be Put On Hold For Now at Steel Strips Wheels Limited (NSE:SSWL)

Key Insights

• Steel Strips Wheels to hold its Annual General Meeting on 30th of September
• CEO Dheeraj Garg's total compensation includes salary of ₹48.0m
• The overall pay is 364% above the industry average
• Steel Strips Wheels' total shareholder return over the past three years was 22% while its EPS grew by 69% over the past three years

Under the guidance of CEO Dheeraj Garg, Steel Strips Wheels Limited (NSE:SSWL) 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 30th of September. However, some shareholders will still be cautious of paying the CEO excessively.

Check out our latest analysis for Steel Strips Wheels

Comparing Steel Strips Wheels Limited's CEO Compensation With The Industry

According to our data, Steel Strips Wheels Limited has a market capitalization of ₹33b, and paid its CEO total annual compensation worth ₹138m over the year to March 2024. This means that the compensation hasn't changed much from last year. We think total compensation is more important but our data shows that the CEO salary is lower, at ₹48m.

On examining similar-sized companies in the Indian Auto Components industry with market capitalizations between ₹17b and ₹67b, we discovered that the median CEO total compensation of that group was ₹30m. This suggests that Dheeraj Garg is paid more than the median for the industry. What's more, Dheeraj Garg holds ₹9.8b worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2024	2023	Proportion (2024)
Salary	₹48m	₹48m	35%
Other	₹90m	₹89m	65%
Total Compensation	₹138m	₹137m	100%

On an industry level, around 76% of total compensation represents salary and 24% is other remuneration. Steel Strips Wheels pays a modest slice of remuneration through salary, as compared 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.

Steel Strips Wheels Limited's Growth

Steel Strips Wheels Limited has seen its earnings per share (EPS) increase by 69% a year over the past three years. Its revenue is up 6.6% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. 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 Steel Strips Wheels Limited Been A Good Investment?

With a total shareholder return of 22% over three years, Steel Strips Wheels Limited shareholders would, in general, be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

To Conclude...

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. 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.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We identified 4 warning signs for Steel Strips Wheels (2 make us uncomfortable!) that you should be aware of before investing here.

Switching gears from Steel Strips Wheels, 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.