We Think Asian Granito India Limited's (NSE:ASIANTILES) CEO Compensation Package Needs To Be Put Under A Microscope

Key Insights

• Asian Granito India to hold its Annual General Meeting on 20th of September
• Salary of ₹6.38m is part of CEO Kamlesh Patel's total remuneration
• Total compensation is 48% above industry average
• Asian Granito India's EPS declined by 47% over the past three years while total shareholder loss over the past three years was 67%

The results at Asian Granito India Limited (NSE:ASIANTILES) have been quite disappointing recently and CEO Kamlesh Patel bears some responsibility for this. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 20th of September. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. From our analysis, we think CEO compensation may need a review in light of the recent performance.

See our latest analysis for Asian Granito India

Comparing Asian Granito India Limited's CEO Compensation With The Industry

Our data indicates that Asian Granito India Limited has a market capitalization of ₹8.0b, and total annual CEO compensation was reported as ₹6.4m for the year to March 2023. That's a notable increase of 8.9% on last year. It is worth noting that the CEO compensation consists entirely of the salary, worth ₹6.4m.

For comparison, other companies in the Indian Building industry with market capitalizations below ₹17b, reported a median total CEO compensation of ₹4.3m. Accordingly, our analysis reveals that Asian Granito India Limited pays Kamlesh Patel north of the industry median.

Component	2023	2022	Proportion (2023)
Salary	₹6.4m	₹5.9m	100%
Other	-	-	-
Total Compensation	₹6.4m	₹5.9m	100%

Talking in terms of the industry, salary represented approximately 97% of total compensation out of all the companies we analyzed, while other remuneration made up 3% of the pie. At the company level, Asian Granito India pays Kamlesh Patel solely through a salary, preferring to go down a conventional route. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Asian Granito India Limited's Growth Numbers

Asian Granito India Limited has reduced its earnings per share by 47% a year over the last three years. In the last year, its revenue changed by just 0.8%.

Few shareholders would be pleased to read that EPS have declined. And the flat revenue is seriously uninspiring. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Asian Granito India Limited Been A Good Investment?

The return of -67% over three years would not have pleased Asian Granito India Limited shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Asian Granito India pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. 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.

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. In our study, we found 2 warning signs for Asian Granito India you should be aware of, and 1 of them can't be ignored.

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.