Shareholders May Be More Conservative With Greenlam Industries Limited's (NSE:GREENLAM) CEO Compensation For Now

Under the guidance of CEO Saurabh Mittal, Greenlam Industries Limited (NSE:GREENLAM) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 12 August 2021. However, some shareholders may still want to keep CEO compensation within reason.

Check out our latest analysis for Greenlam Industries

Comparing Greenlam Industries Limited's CEO Compensation With the industry

Our data indicates that Greenlam Industries Limited has a market capitalization of ₹32b, and total annual CEO compensation was reported as ₹41m for the year to March 2021. That's a notable decrease of 21% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at ₹18m.

For comparison, other companies in the same industry with market capitalizations ranging between ₹15b and ₹59b had a median total CEO compensation of ₹19m. This suggests that Saurabh Mittal is paid more than the median for the industry. What's more, Saurabh Mittal holds ₹3.4b worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2021	2020	Proportion (2021)
Salary	₹18m	₹24m	44%
Other	₹23m	₹28m	56%
Total Compensation	₹41m	₹52m	100%

Talking in terms of the industry, salary represents all of total compensation among the companies we analyzed, while other remuneration is, interestingly, completely ignored. Greenlam Industries sets aside a smaller share of compensation for salary, in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at Greenlam Industries Limited's Growth Numbers

Greenlam Industries Limited has seen its earnings per share (EPS) increase by 14% a year over the past three years. Its revenue is up 16% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Greenlam Industries Limited Been A Good Investment?

Boasting a total shareholder return of 41% over three years, Greenlam Industries 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.

To Conclude...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

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 Greenlam Industries that you should be aware of before investing.

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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