Here's Why Lloyds Engineering Works Limited's (NSE:LLOYDSENGG) CEO May Deserve A Raise

Key Insights

• Lloyds Engineering Works to hold its Annual General Meeting on 26th of July
• CEO Mukesh Gupta's total compensation includes salary of ₹4.99m
• The overall pay is 61% below the industry average
• Over the past three years, Lloyds Engineering Works' EPS grew by 399% and over the past three years, the total shareholder return was 2,316%

The solid performance at Lloyds Engineering Works Limited (NSE:LLOYDSENGG) has been impressive and shareholders will probably be pleased to know that CEO Mukesh Gupta has delivered. This would be kept in mind at the upcoming AGM on 26th of July which will be a chance for them to hear the board review the financial results, discuss future company strategy and vote on resolutions such as executive remuneration and other matters. Here we will show why we think CEO compensation is appropriate and discuss the case for a pay rise.

View our latest analysis for Lloyds Engineering Works

Comparing Lloyds Engineering Works Limited's CEO Compensation With The Industry

Our data indicates that Lloyds Engineering Works Limited has a market capitalization of ₹94b, and total annual CEO compensation was reported as ₹10m for the year to March 2024. This was the same amount the CEO received in the prior year. We think total compensation is more important but our data shows that the CEO salary is lower, at ₹5.0m.

For comparison, other companies in the Indian Machinery industry with market capitalizations ranging between ₹33b and ₹134b had a median total CEO compensation of ₹25m. This suggests that Mukesh Gupta is paid below the industry median. Moreover, Mukesh Gupta also holds ₹4.1m worth of Lloyds Engineering Works stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2024	2023	Proportion (2024)
Salary	₹5.0m	₹5.0m	50%
Other	₹5.0m	₹5.0m	50%
Total Compensation	₹10m	₹10m	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. Lloyds Engineering Works sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Lloyds Engineering Works Limited's Growth Numbers

Lloyds Engineering Works Limited has seen its earnings per share (EPS) increase by 399% a year over the past three years. Its revenue is up 100% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Lloyds Engineering Works Limited Been A Good Investment?

Boasting a total shareholder return of 2,316% over three years, Lloyds Engineering Works 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.

In Summary...

Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We did our research and identified 4 warning signs (and 1 which makes us a bit uncomfortable) in Lloyds Engineering Works we think you should know about.

Switching gears from Lloyds Engineering Works, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com