It's Unlikely That Uno Minda Limited's (NSE:UNOMINDA) CEO Will See A Huge Pay Rise This Year

Key Insights

• Uno Minda to hold its Annual General Meeting on 27th of August
• Total pay for CEO Nirmal Minda includes ₹48.6m salary
• Total compensation is 133% above industry average
• Uno Minda's EPS grew by 34% over the past three years while total shareholder return over the past three years was 223%

CEO Nirmal Minda has done a decent job of delivering relatively good performance at Uno Minda Limited (NSE:UNOMINDA) 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 27th of August. However, some shareholders may still want to keep CEO compensation within reason.

See our latest analysis for Uno Minda

How Does Total Compensation For Nirmal Minda Compare With Other Companies In The Industry?

According to our data, Uno Minda Limited has a market capitalization of ₹666b, and paid its CEO total annual compensation worth ₹333m over the year to March 2024. Notably, that's an increase of 54% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at ₹49m.

On comparing similar companies from the Indian Auto Components industry with market caps ranging from ₹335b to ₹1.0t, we found that the median CEO total compensation was ₹143m. This suggests that Nirmal Minda is paid more than the median for the industry. What's more, Nirmal Minda holds ₹242b 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	₹49m	₹42m	15%
Other	₹285m	₹175m	85%
Total Compensation	₹333m	₹217m	100%

On an industry level, around 74% of total compensation represents salary and 26% is other remuneration. Uno Minda sets aside a smaller share of compensation for salary, in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Uno Minda Limited's Growth

Over the past three years, Uno Minda Limited has seen its earnings per share (EPS) grow by 34% per year. Its revenue is up 25% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Uno Minda Limited Been A Good Investment?

Boasting a total shareholder return of 223% over three years, Uno Minda Limited has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

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.

Shareholders may want to check for free if Uno Minda insiders are buying or selling shares.

Switching gears from Uno Minda, 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.