Beardsell Limited's (NSE:BEARDSELL) CEO Will Probably Have Their Compensation Approved By Shareholders

Key Insights

• Beardsell will host its Annual General Meeting on 26th of September
• Salary of ₹3.48m is part of CEO Amrith Anumolu's total remuneration
• Total compensation is similar to the industry average
• Over the past three years, Beardsell's EPS grew by 94% and over the past three years, the total shareholder return was 357%

The performance at Beardsell Limited (NSE:BEARDSELL) has been quite strong recently and CEO Amrith Anumolu has played a role in it. Coming up to the next AGM on 26th of September, shareholders would be keeping this in mind. The focus will probably be on the future company strategy as shareholders cast their votes on resolutions such as executive remuneration and other matters. In light of the great performance, we discuss the case why we think CEO compensation is not excessive.

View our latest analysis for Beardsell

Comparing Beardsell Limited's CEO Compensation With The Industry

According to our data, Beardsell Limited has a market capitalization of ₹1.3b, and paid its CEO total annual compensation worth ₹4.5m over the year to March 2023. We note that's an increase of 19% above last year. We note that the salary portion, which stands at ₹3.48m constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the Indian Building industry with market capitalizations below ₹17b, reported a median total CEO compensation of ₹4.8m. So it looks like Beardsell compensates Amrith Anumolu in line with the median for the industry.

Component	2023	2022	Proportion (2023)
Salary	₹3.5m	₹2.9m	77%
Other	₹1.0m	₹916k	23%
Total Compensation	₹4.5m	₹3.8m	100%

Speaking on an industry level, nearly 97% of total compensation represents salary, while the remainder of 3% is other remuneration. It's interesting to note that Beardsell allocates a smaller portion of compensation to salary in comparison to the broader industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

Beardsell Limited's Growth

Beardsell Limited has seen its earnings per share (EPS) increase by 94% a year over the past three years. In the last year, its revenue is up 13%.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. 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 Beardsell Limited Been A Good Investment?

Boasting a total shareholder return of 357% over three years, Beardsell Limited has done well by shareholders. 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...

Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 3 warning signs for Beardsell that investors should look into moving forward.

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.