Shareholders Will Probably Hold Off On Increasing Cords Cable Industries Limited's (NSE:CORDSCABLE) CEO Compensation For The Time Being

Key Insights

• Cords Cable Industries' Annual General Meeting to take place on 23rd of September
• Salary of ₹12.8m is part of CEO Naveen Sawhney's total remuneration
• Total compensation is 249% above industry average
• Cords Cable Industries' EPS grew by 20% over the past three years while total shareholder return over the past three years was 288%

CEO Naveen Sawhney has done a decent job of delivering relatively good performance at Cords Cable Industries Limited (NSE:CORDSCABLE) recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 23rd of September. However, some shareholders may still want to keep CEO compensation within reason.

Check out our latest analysis for Cords Cable Industries

How Does Total Compensation For Naveen Sawhney Compare With Other Companies In The Industry?

At the time of writing, our data shows that Cords Cable Industries Limited has a market capitalization of ₹2.7b, and reported total annual CEO compensation of ₹15m for the year to March 2024. That's just a smallish increase of 3.9% on last year. In particular, the salary of ₹12.8m, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar-sized companies in the Indian Electrical industry with market capitalizations below ₹17b, we found that the median total CEO compensation was ₹4.4m. Accordingly, our analysis reveals that Cords Cable Industries Limited pays Naveen Sawhney north of the industry median. What's more, Naveen Sawhney holds ₹1.3b worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2024	2023	Proportion (2024)
Salary	₹13m	₹11m	83%
Other	₹2.6m	₹3.7m	17%
Total Compensation	₹15m	₹15m	100%

Speaking on an industry level, nearly 84% of total compensation represents salary, while the remainder of 16% is other remuneration. Although there is a difference in how total compensation is set, Cords Cable Industries more or less reflects the market in terms of setting the salary. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Cords Cable Industries Limited's Growth Numbers

Cords Cable Industries Limited has seen its earnings per share (EPS) increase by 20% a year over the past three years. It achieved revenue growth of 24% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. This sort of respectable year-on-year revenue growth is often seen at a healthy, 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 Cords Cable Industries Limited Been A Good Investment?

Boasting a total shareholder return of 288% over three years, Cords Cable Industries Limited has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus 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.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 2 warning signs for Cords Cable Industries that investors should think about before committing capital to this stock.

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.

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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.