Here's Why Shareholders May Want To Be Cautious With Increasing Sundaram Brake Linings Limited's (NSE:SUNDRMBRAK) CEO Pay Packet
Key Insights
- Sundaram Brake Linings to hold its Annual General Meeting on 24th of July
- Salary of ₹8.40m is part of CEO Krishna Mahesh's total remuneration
- Total compensation is 48% above industry average
- Sundaram Brake Linings' EPS grew by 305% over the past three years while total shareholder return over the past three years was 128%
Performance at Sundaram Brake Linings Limited (NSE:SUNDRMBRAK) has been reasonably good and CEO Krishna Mahesh has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 24th of July, 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 be hesitant of being overly generous with CEO compensation.
See our latest analysis for Sundaram Brake Linings
Comparing Sundaram Brake Linings Limited's CEO Compensation With The Industry
According to our data, Sundaram Brake Linings Limited has a market capitalization of ₹3.2b, and paid its CEO total annual compensation worth ₹11m over the year to March 2025. This was the same amount the CEO received in the prior year. We note that the salary portion, which stands at ₹8.40m constitutes the majority of total compensation received by the CEO.
On comparing similar-sized companies in the Indian Auto Components industry with market capitalizations below ₹17b, we found that the median total CEO compensation was ₹7.2m. Accordingly, our analysis reveals that Sundaram Brake Linings Limited pays Krishna Mahesh north of the industry median. What's more, Krishna Mahesh holds ₹334m 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 | ₹8.4m | ₹8.4m | 79% |
| Other | ₹2.3m | ₹2.3m | 21% |
| Total Compensation | ₹11m | ₹11m | 100% |
On an industry level, around 77% of total compensation represents salary and 23% is other remuneration. Sundaram Brake Linings is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
Sundaram Brake Linings Limited's Growth
Sundaram Brake Linings Limited has seen its earnings per share (EPS) increase by 305% a year over the past three years. The trailing twelve months of revenue was pretty much the same as the prior period.
This demonstrates that the company has been improving recently and is good news for the shareholders. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Sundaram Brake Linings Limited Been A Good Investment?
We think that the total shareholder return of 128%, over three years, would leave most Sundaram Brake Linings 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. 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 is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. That's why we did our research, and identified 3 warning signs for Sundaram Brake Linings (of which 1 is potentially serious!) that you should know about in order to have a holistic understanding of the stock.
Important note: Sundaram Brake Linings is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.
Valuation is complex, but we're here to simplify it.
Discover if Sundaram Brake Linings might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
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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.