Shareholders Will Probably Hold Off On Increasing B.L. Kashyap and Sons Limited's (NSE:BLKASHYAP) CEO Compensation For The Time Being

Under the guidance of CEO Vineet Kashyap, B.L. Kashyap and Sons Limited (NSE:BLKASHYAP) has performed reasonably well recently. As shareholders go into the upcoming AGM on 30 September 2022, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still want to keep CEO compensation within reason.

Check out our latest analysis for B.L. Kashyap and Sons

Comparing B.L. Kashyap and Sons Limited's CEO Compensation With The Industry

At the time of writing, our data shows that B.L. Kashyap and Sons Limited has a market capitalization of ₹5.8b, and reported total annual CEO compensation of ₹4.6m for the year to March 2022. That's a notable increase of 35% on last year. In particular, the salary of ₹4.49m, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the industry with market capitalizations under ₹16b, the reported median total CEO compensation was ₹3.2m. Hence, we can conclude that Vineet Kashyap is remunerated higher than the industry median. Moreover, Vineet Kashyap also holds ₹1.3b worth of B.L. Kashyap and Sons stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2022	2021	Proportion (2022)
Salary	₹4.5m	₹3.3m	97%
Other	₹116k	₹150k	3%
Total Compensation	₹4.6m	₹3.4m	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. B.L. Kashyap and Sons pays a high salary, concentrating more on this aspect of compensation in comparison to non-salary pay. 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.

A Look at B.L. Kashyap and Sons Limited's Growth Numbers

B.L. Kashyap and Sons Limited's earnings per share (EPS) grew 64% per year over the last three years. In the last year, its revenue is up 28%.

Shareholders would be glad to know that the company has improved itself over the last few years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. 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 B.L. Kashyap and Sons Limited Been A Good Investment?

Boasting a total shareholder return of 159% over three years, B.L. Kashyap and Sons Limited has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

Vineet receives almost all of their compensation through a salary. Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. In our study, we found 3 warning signs for B.L. Kashyap and Sons you should be aware of, and 1 of them is significant.

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.

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.