Shareholders May Find It Hard To Justify Increasing Asian Granito India Limited's (NSE:ASIANTILES) CEO Compensation For Now

Shareholders of Asian Granito India Limited (NSE:ASIANTILES) will have been dismayed by the negative share price return over the last three years. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. These are some of the concerns that shareholders may want to bring up at the next AGM held on 24 December 2021. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. We discuss below why we think shareholders should be cautious of approving a raise for the CEO at the moment.

View our latest analysis for Asian Granito India

How Does Total Compensation For Kamlesh 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 ₹7.6b, and reported total annual CEO compensation of ₹4.6m for the year to March 2021. That's a modest increase of 5.3% on the prior year. It is worth noting that the CEO compensation consists entirely of the salary, worth ₹4.6m.

On comparing similar-sized companies in the industry with market capitalizations below ₹15b, we found that the median total CEO compensation was ₹4.6m. So it looks like Asian Granito India compensates Kamlesh Patel in line with the median for the industry. Moreover, Kamlesh Patel also holds ₹983m worth of Asian Granito India stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2021	2020	Proportion (2021)
Salary	₹4.6m	₹4.4m	100%
Other	-	-	-
Total Compensation	₹4.6m	₹4.4m	100%

On an industry level, roughly 89% of total compensation represents salary and 11% 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 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 Asian Granito India Limited's Growth Numbers

Asian Granito India Limited's earnings per share (EPS) grew 15% per year over the last three years. Its revenue is up 43% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Asian Granito India Limited Been A Good Investment?

With a three year total loss of 17% for the shareholders, Asian Granito India Limited would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

Asian Granito India pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. Shareholders would be keen to know what's holding the stock back when earnings have grown. At the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We identified 5 warning signs for Asian Granito India (1 is concerning!) that you should be aware of before investing here.

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.

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

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.