We Think The Compensation For CSB Bank Limited's (NSE:CSBBANK) CEO Looks About Right

Key Insights

• CSB Bank to hold its Annual General Meeting on 26th of August
• CEO Pralay Mondal's total compensation includes salary of ₹24.7m
• The overall pay is comparable to the industry average
• Over the past three years, CSB Bank's EPS grew by 5.4% and over the past three years, the total shareholder return was 96%

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CEO Pralay Mondal has done a decent job of delivering relatively good performance at CSB Bank Limited (NSE:CSBBANK) 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 26th of August. We present our case of why we think CEO compensation looks fair.

See our latest analysis for CSB Bank

How Does Total Compensation For Pralay Mondal Compare With Other Companies In The Industry?

At the time of writing, our data shows that CSB Bank Limited has a market capitalization of ₹69b, and reported total annual CEO compensation of ₹35m for the year to March 2025. That's a modest increase of 3.1% on the prior year. In particular, the salary of ₹24.7m, makes up a huge portion of the total compensation being paid to the CEO.

On examining similar-sized companies in the Indian Banks industry with market capitalizations between ₹35b and ₹139b, we discovered that the median CEO total compensation of that group was ₹28m. This suggests that CSB Bank remunerates its CEO largely in line with the industry average.

On an industry level, around 66% of total compensation represents salary and 34% is other remuneration. CSB Bank is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

CSB Bank Limited's Growth

CSB Bank Limited has seen its earnings per share (EPS) increase by 5.4% a year over the past three years. In the last year, its revenue is up 15%.

We would argue that the modest growth in revenue is a notable positive. And the improvement in EPSis modest but respectable. So while performance isn't amazing, we think it really does seem quite respectable. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has CSB Bank Limited Been A Good Investment?

We think that the total shareholder return of 96%, over three years, would leave most CSB Bank Limited shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. In saying that, any proposed increase to CEO compensation will still be assessed on how reasonable it is based on performance and industry benchmarks.

So you may want to check if insiders are buying CSB Bank shares with their own money (free access).

Important note: CSB Bank 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.

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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.