Here's Why Shareholders May Want To Be Cautious With Increasing City Union Bank Limited's (NSE:CUB) CEO Pay Packet

Key Insights

• City Union Bank will host its Annual General Meeting on 13th of August
• CEO N. V. Kamakodi's total compensation includes salary of ₹23.0m
• Total compensation is 49% above industry average
• City Union Bank's total shareholder return over the past three years was 25% while its EPS grew by 13% over the past three years

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Under the guidance of CEO N. V. Kamakodi, City Union Bank Limited (NSE:CUB) has performed reasonably well recently. As shareholders go into the upcoming AGM on 13th of August, 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 City Union Bank

Comparing City Union Bank Limited's CEO Compensation With The Industry

According to our data, City Union Bank Limited has a market capitalization of ₹159b, and paid its CEO total annual compensation worth ₹37m over the year to March 2025. We note that's an increase of 49% above last year. In particular, the salary of ₹23.0m, 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 ₹88b and ₹281b, we discovered that the median CEO total compensation of that group was ₹25m. This suggests that N. V. Kamakodi is paid more than the median for the industry. What's more, N. V. Kamakodi holds ₹523m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, around 63% of total compensation represents salary and 37% is other remuneration. City Union Bank 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.

City Union Bank Limited's Growth

Over the past three years, City Union Bank Limited has seen its earnings per share (EPS) grow by 13% per year. It achieved revenue growth of 12% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has City Union Bank Limited Been A Good Investment?

City Union Bank Limited has generated a total shareholder return of 25% over three years, so most shareholders would 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.

CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 1 warning sign for City Union Bank that investors should look into moving forward.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.