3M India Limited's (NSE:3MINDIA) CEO Looks Due For A Compensation Raise

Key Insights

• 3M India will host its Annual General Meeting on 26th of August
• CEO Ramesh Ramadurai's total compensation includes salary of ₹44.3m
• The total compensation is 46% less than the average for the industry
• Over the past three years, 3M India's EPS grew by 15% and over the past three years, the total shareholder return was 50%

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The solid performance at 3M India Limited (NSE:3MINDIA) has been impressive and shareholders will probably be pleased to know that CEO Ramesh Ramadurai has delivered. This would be kept in mind at the upcoming AGM on 26th 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 3M India

Comparing 3M India Limited's CEO Compensation With The Industry

Our data indicates that 3M India Limited has a market capitalization of ₹351b, and total annual CEO compensation was reported as ₹47m for the year to March 2025. We note that's an increase of 22% above last year. In particular, the salary of ₹44.3m, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the India Industrials industry with market capitalizations ranging from ₹174b to ₹557b, the reported median CEO total compensation was ₹86m. That is to say, Ramesh Ramadurai is paid under the industry median.

Talking in terms of the industry, salary represented approximately 88% of total compensation out of all the companies we analyzed, while other remuneration made up 12% of the pie. 3M India pays a high salary, concentrating more on this aspect of compensation in comparison to non-salary pay. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at 3M India Limited's Growth Numbers

3M India Limited has seen its earnings per share (EPS) increase by 15% a year over the past three years. It achieved revenue growth of 9.8% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. 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 3M India Limited Been A Good Investment?

Most shareholders would probably be pleased with 3M India Limited for providing a total return of 50% 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.

To Conclude...

Ramesh receives almost all of their compensation through a salary. 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. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

CEO compensation can have a massive impact on performance, but it's just one element. We've identified 1 warning sign for 3M India that investors should be aware of in a dynamic business environment.

Switching gears from 3M India, 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.

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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.