Increases to Havells India Limited's (NSE:HAVELLS) CEO Compensation Might Cool off for now

Key Insights

• Havells India will host its Annual General Meeting on 28th of June
• Total pay for CEO Anil Gupta includes ₹86.0m salary
• The total compensation is 314% higher than the average for the industry
• Havells India's total shareholder return over the past three years was 92% while its EPS grew by 6.7% over the past three years

Under the guidance of CEO Anil Gupta, Havells India Limited (NSE:HAVELLS) 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 28th of June. However, some shareholders will still be cautious of paying the CEO excessively.

Check out our latest analysis for Havells India

How Does Total Compensation For Anil Gupta Compare With Other Companies In The Industry?

According to our data, Havells India Limited has a market capitalization of ₹1.2t, and paid its CEO total annual compensation worth ₹305m over the year to March 2024. Notably, that's an increase of 16% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at ₹86m.

On comparing similar companies in the Indian Electrical industry with market capitalizations above ₹669b, we found that the median total CEO compensation was ₹74m. Accordingly, our analysis reveals that Havells India Limited pays Anil Gupta north of the industry median.

Component	2024	2023	Proportion (2024)
Salary	₹86m	₹78m	28%
Other	₹219m	₹186m	72%
Total Compensation	₹305m	₹264m	100%

Speaking on an industry level, nearly 83% of total compensation represents salary, while the remainder of 17% is other remuneration. Havells India 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.

Havells India Limited's Growth

Havells India Limited's earnings per share (EPS) grew 6.7% per year over the last three years. In the last year, its revenue is up 9.9%.

We would argue that the improvement in revenue is good, but isn't particularly impressive, but it is good to see modest EPS growth. Considering these factors we'd say performance has been pretty decent, though not amazing. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Havells India Limited Been A Good Investment?

We think that the total shareholder return of 92%, over three years, would leave most Havells India Limited shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

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. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are 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 1 warning sign for Havells India 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.

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