Shareholders Will Probably Hold Off On Increasing Kabra Extrusiontechnik Limited's (NSE:KABRAEXTRU) CEO Compensation For The Time Being

Key Insights

• Kabra Extrusiontechnik's Annual General Meeting to take place on 19th of July
• CEO Anand Kabra's total compensation includes salary of ₹12.4m
• Total compensation is 33% above industry average
• Kabra Extrusiontechnik's total shareholder return over the past three years was 114% while its EPS grew by 7.9% over the past three years

CEO Anand Kabra has done a decent job of delivering relatively good performance at Kabra Extrusiontechnik Limited (NSE:KABRAEXTRU) 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 19th of July. However, some shareholders will still be cautious of paying the CEO excessively.

View our latest analysis for Kabra Extrusiontechnik

Comparing Kabra Extrusiontechnik Limited's CEO Compensation With The Industry

Our data indicates that Kabra Extrusiontechnik Limited has a market capitalization of ₹15b, and total annual CEO compensation was reported as ₹21m for the year to March 2024. That's a notable increase of 58% on last year. Notably, the salary which is ₹12.4m, represents most of the total compensation being paid.

For comparison, other companies in the Indian Machinery industry with market capitalizations ranging between ₹8.4b and ₹33b had a median total CEO compensation of ₹15m. This suggests that Anand Kabra is paid more than the median for the industry. What's more, Anand Kabra holds ₹2.9b 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	₹12m	₹7.7m	61%
Other	₹8.1m	₹5.3m	39%
Total Compensation	₹21m	₹13m	100%

Talking in terms of the industry, salary represented approximately 92% of total compensation out of all the companies we analyzed, while other remuneration made up 8% of the pie. In Kabra Extrusiontechnik's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Kabra Extrusiontechnik Limited's Growth Numbers

Kabra Extrusiontechnik Limited has seen its earnings per share (EPS) increase by 7.9% a year over the past three years. In the last year, its revenue is down 9.3%.

We generally like to see a little revenue growth, but the modest improvement in EPS is good. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. 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 Kabra Extrusiontechnik Limited Been A Good Investment?

Most shareholders would probably be pleased with Kabra Extrusiontechnik Limited for providing a total return of 114% 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.

In Summary...

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. 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.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 3 warning signs for Kabra Extrusiontechnik that investors should think about before committing capital to this stock.

Important note: Kabra Extrusiontechnik 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.

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