We Take A Look At Whether Cochin Shipyard Limited's (NSE:COCHINSHIP) CEO May Be Underpaid

Key Insights

• Cochin Shipyard's Annual General Meeting to take place on 29th of September
• CEO Madhu Nair's total compensation includes salary of ₹5.85m
• The overall pay is 94% below the industry average
• Cochin Shipyard's EPS grew by 13% over the past three years while total shareholder return over the past three years was 857%

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The impressive results at Cochin Shipyard Limited (NSE:COCHINSHIP) recently will be great news for shareholders. At the upcoming AGM on 29th of September, they will get a chance to hear the board review the company results, discuss future strategy and cast their vote on any resolutions such as executive remuneration. Let's take a look at why we think the CEO has done a good job and we'll present the case for a bump in pay.

View our latest analysis for Cochin Shipyard

Comparing Cochin Shipyard Limited's CEO Compensation With The Industry

At the time of writing, our data shows that Cochin Shipyard Limited has a market capitalization of ₹500b, and reported total annual CEO compensation of ₹7.4m for the year to March 2025. Notably, that's a decrease of 17% over the year before. In particular, the salary of ₹5.85m, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the Indian Machinery industry with market capitalizations ranging between ₹353b and ₹1.1t had a median total CEO compensation of ₹123m. This suggests that Madhu Nair is paid below the industry median. Moreover, Madhu Nair also holds ₹3.8m worth of Cochin Shipyard stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, around 97% of total compensation represents salary and 3% is other remuneration. In Cochin Shipyard's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Cochin Shipyard Limited's Growth

Cochin Shipyard Limited has seen its earnings per share (EPS) increase by 13% a year over the past three years. It achieved revenue growth of 24% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Cochin Shipyard Limited Been A Good Investment?

Most shareholders would probably be pleased with Cochin Shipyard Limited for providing a total return of 857% over three years. 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.

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. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 1 warning sign for Cochin Shipyard that investors should look into moving forward.

Switching gears from Cochin Shipyard, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.