Shareholders May Be More Conservative With ICICI Bank Limited's (NSE:ICICIBANK) CEO Compensation For Now

Key Insights

• ICICI Bank's Annual General Meeting to take place on 29th of August
• Total pay for CEO Sandeep Bakhshi includes ₹34.6m salary
• The overall pay is 505% above the industry average
• ICICI Bank's EPS grew by 30% over the past three years while total shareholder return over the past three years was 74%

Performance at ICICI Bank Limited (NSE:ICICIBANK) has been reasonably good and CEO Sandeep Bakhshi has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 29th 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 ICICI Bank

How Does Total Compensation For Sandeep Bakhshi Compare With Other Companies In The Industry?

At the time of writing, our data shows that ICICI Bank Limited has a market capitalization of ₹8.4t, and reported total annual CEO compensation of ₹100m for the year to March 2024. That's a fairly small increase of 4.1% over the previous year. While we always look at total compensation first, our analysis shows that the salary component is less, at ₹35m.

On comparing similar companies in the Indian Banks industry with market capitalizations above ₹671b, we found that the median total CEO compensation was ₹16m. Hence, we can conclude that Sandeep Bakhshi is remunerated higher than the industry median. What's more, Sandeep Bakhshi holds ₹398m 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	₹35m	₹36m	35%
Other	₹65m	₹60m	65%
Total Compensation	₹100m	₹96m	100%

Talking in terms of the industry, salary represented approximately 72% of total compensation out of all the companies we analyzed, while other remuneration made up 28% of the pie. It's interesting to note that ICICI Bank allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at ICICI Bank Limited's Growth Numbers

ICICI Bank Limited has seen its earnings per share (EPS) increase by 30% a year over the past three years. It achieved revenue growth of 24% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has ICICI Bank Limited Been A Good Investment?

Most shareholders would probably be pleased with ICICI Bank Limited for providing a total return of 74% over three years. 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. 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.

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 ICICI Bank that investors should be aware of in a dynamic business environment.

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.