We Think Shareholders Are Less Likely To Approve A Large Pay Rise For Hexa Tradex Limited's (NSE:HEXATRADEX) CEO For Now

Key Insights

• Hexa Tradex's Annual General Meeting to take place on 20th of August
• CEO Neeraj Kanagat's total compensation includes salary of ₹9.49m
• The total compensation is 207% higher than the average for the industry
• Hexa Tradex's total shareholder return over the past three years was 27% while its EPS grew by 61% over the past three years

CEO Neeraj Kanagat has done a decent job of delivering relatively good performance at Hexa Tradex Limited (NSE:HEXATRADEX) recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 20th of August. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

View our latest analysis for Hexa Tradex

Comparing Hexa Tradex Limited's CEO Compensation With The Industry

At the time of writing, our data shows that Hexa Tradex Limited has a market capitalization of ₹15b, and reported total annual CEO compensation of ₹11m for the year to March 2024. We note that's an increase of 11% above last year. Notably, the salary which is ₹9.49m, represents most of the total compensation being paid.

For comparison, other companies in the India Trade Distributors industry with market capitalizations ranging between ₹8.4b and ₹34b had a median total CEO compensation of ₹3.7m. Hence, we can conclude that Neeraj Kanagat is remunerated higher than the industry median.

Component	2024	2023	Proportion (2024)
Salary	₹9.5m	₹8.5m	84%
Other	₹1.9m	₹1.8m	16%
Total Compensation	₹11m	₹10m	100%

On an industry level, it's fascinating to see that all of total compensation represents salary and non-salary benefits do not factor into the equation at all. Hexa Tradex sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Hexa Tradex Limited's Growth Numbers

Hexa Tradex Limited has seen its earnings per share (EPS) increase by 61% a year over the past three years. Its revenue is down 55% over the previous year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. 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 Hexa Tradex Limited Been A Good Investment?

With a total shareholder return of 27% over three years, Hexa Tradex Limited shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

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. We've identified 1 warning sign for Hexa Tradex that investors should be aware of in a dynamic business environment.

Important note: Hexa Tradex is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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.