Why We Think The CEO Of The Jammu and Kashmir Bank Limited (NSE:J&KBANK) May Soon See A Pay Rise

Key Insights

• Jammu and Kashmir Bank to hold its Annual General Meeting on 17th of August
• Salary of ₹3.00m is part of CEO Baldev Prakash's total remuneration
• The overall pay is 60% below the industry average
• Jammu and Kashmir Bank's total shareholder return over the past three years was 214% while its EPS grew by 32% over the past three years

The solid performance at The Jammu and Kashmir Bank Limited (NSE:J&KBANK) has been impressive and shareholders will probably be pleased to know that CEO Baldev Prakash has delivered. This would be kept in mind at the upcoming AGM on 17th of August which will be a chance for them to hear the board review the financial results, discuss future company strategy and vote on resolutions such as executive remuneration and other matters. Let's take a look at why we think the CEO has done a good job and we'll present the case for a bump in pay.

Check out our latest analysis for Jammu and Kashmir Bank

How Does Total Compensation For Baldev Prakash Compare With Other Companies In The Industry?

Our data indicates that The Jammu and Kashmir Bank Limited has a market capitalization of ₹125b, and total annual CEO compensation was reported as ₹9.8m for the year to March 2024. That's slightly lower by 5.2% over the previous year. We think total compensation is more important but our data shows that the CEO salary is lower, at ₹3.0m.

For comparison, other companies in the Indian Banks industry with market capitalizations ranging between ₹84b and ₹269b had a median total CEO compensation of ₹25m. This suggests that Baldev Prakash is paid below the industry median.

Component	2024	2023	Proportion (2024)
Salary	₹3.0m	₹3.2m	31%
Other	₹6.8m	₹7.1m	69%
Total Compensation	₹9.8m	₹10m	100%

Talking in terms of the industry, salary represented approximately 76% of total compensation out of all the companies we analyzed, while other remuneration made up 24% of the pie. Jammu and Kashmir Bank 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.

The Jammu and Kashmir Bank Limited's Growth

The Jammu and Kashmir Bank Limited has seen its earnings per share (EPS) increase by 32% a year over the past three years. It saw its revenue drop 2.1% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's always a tough situation when revenues are not growing, but ultimately profits are more important. 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 The Jammu and Kashmir Bank Limited Been A Good Investment?

Boasting a total shareholder return of 214% over three years, The Jammu and Kashmir Bank Limited has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 2 warning signs for Jammu and Kashmir Bank that investors should be aware of in a dynamic business environment.

Important note: Jammu and Kashmir 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.