We Think The Compensation For Sundram Fasteners Limited's (NSE:SUNDRMFAST) CEO Looks About Right

Key Insights

• Sundram Fasteners will host its Annual General Meeting on 30th of June
• Total pay for CEO Arathi Krishna includes ₹9.48m salary
• Total compensation is similar to the industry average
• Sundram Fasteners' EPS grew by 5.7% over the past three years while total shareholder return over the past three years was 38%

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Under the guidance of CEO Arathi Krishna, Sundram Fasteners Limited (NSE:SUNDRMFAST) 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 June. We present our case of why we think CEO compensation looks fair.

View our latest analysis for Sundram Fasteners

How Does Total Compensation For Arathi Krishna Compare With Other Companies In The Industry?

At the time of writing, our data shows that Sundram Fasteners Limited has a market capitalization of ₹202b, and reported total annual CEO compensation of ₹84m for the year to March 2025. That's a notable increase of 11% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at ₹9.5m.

On examining similar-sized companies in the Indian Auto Components industry with market capitalizations between ₹87b and ₹278b, we discovered that the median CEO total compensation of that group was ₹70m. So it looks like Sundram Fasteners compensates Arathi Krishna in line with the median for the industry. What's more, Arathi Krishna holds ₹45m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Speaking on an industry level, nearly 80% of total compensation represents salary, while the remainder of 20% is other remuneration. Sundram Fasteners sets aside a smaller share of compensation for salary, in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Sundram Fasteners Limited's Growth

Sundram Fasteners Limited's earnings per share (EPS) grew 5.7% per year over the last three years. In the last year, its revenue is up 5.1%.

We're not particularly impressed by the revenue growth, but it is good to see modest EPS growth. So there are some positives here, but not enough to earn high praise. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Sundram Fasteners Limited Been A Good Investment?

Most shareholders would probably be pleased with Sundram Fasteners Limited for providing a total return of 38% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

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. However, we still think that any proposed increase in CEO compensation will be examined closely to make sure the compensation is appropriate and linked to performance.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 1 warning sign for Sundram Fasteners that investors should be aware of in a dynamic business environment.

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.