It Looks Like Asian Granito India Limited's (NSE:ASIANTILES) CEO May Expect Their Salary To Be Put Under The Microscope

Key Insights

• Asian Granito India to hold its Annual General Meeting on 6th of August
• CEO Kamlesh, Kamleshbhai Patel's total compensation includes salary of ₹6.92m
• Total compensation is 97% above industry average
• Asian Granito India's EPS declined by 101% over the past three years while total shareholder loss over the past three years was 26%

Asian Granito India Limited (NSE:ASIANTILES) has not performed well recently and CEO Kamlesh, Kamleshbhai Patel will probably need to up their game. At the upcoming AGM on 6th of August, shareholders can hear from the board including their plans for turning around performance. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. The data we present below explains why we think CEO compensation is not consistent with recent performance.

View our latest analysis for Asian Granito India

How Does Total Compensation For Kamlesh, Kamleshbhai Patel Compare With Other Companies In The Industry?

At the time of writing, our data shows that Asian Granito India Limited has a market capitalization of ₹11b, and reported total annual CEO compensation of ₹6.9m for the year to March 2024. We note that's an increase of 8.5% above last year. It is worth noting that the CEO compensation consists entirely of the salary, worth ₹6.9m.

On comparing similar-sized companies in the Indian Building industry with market capitalizations below ₹17b, we found that the median total CEO compensation was ₹3.5m. Hence, we can conclude that Kamlesh, Kamleshbhai Patel is remunerated higher than the industry median. Furthermore, Kamlesh, Kamleshbhai Patel directly owns ₹937m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	₹6.9m	₹6.4m	100%
Other	-	-	-
Total Compensation	₹6.9m	₹6.4m	100%

On an industry level, roughly 92% of total compensation represents salary and 8% is other remuneration. Speaking on a company level, Asian Granito India prefers to tread along a traditional path, disbursing all compensation through a salary. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Asian Granito India Limited's Growth

Over the last three years, Asian Granito India Limited has shrunk its earnings per share by 101% per year. Its revenue is down 2.1% over the previous year.

Few shareholders would be pleased to read that EPS have declined. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Asian Granito India Limited Been A Good Investment?

Given the total shareholder loss of 26% over three years, many shareholders in Asian Granito India Limited are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Asian Granito India pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We did our research and identified 2 warning signs (and 1 which makes us a bit uncomfortable) in Asian Granito India we think you should know about.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com