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

Key Insights

• Manugraph India to hold its Annual General Meeting on 27th of September
• Total pay for CEO Sanjay Shah includes ₹11.8m salary
• Total compensation is 143% above industry average
• Manugraph India's total shareholder return over the past three years was 110% while its EPS grew by 6.2% over the past three years

Performance at Manugraph India Limited (NSE:MANUGRAPH) has been reasonably good and CEO Sanjay Shah has done a decent job of steering the company in the right direction. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 27th of September. However, some shareholders will still be cautious of paying the CEO excessively.

See our latest analysis for Manugraph India

Comparing Manugraph India Limited's CEO Compensation With The Industry

At the time of writing, our data shows that Manugraph India Limited has a market capitalization of ₹772m, and reported total annual CEO compensation of ₹12m for the year to March 2024. That is, the compensation was roughly the same as last year. It is worth noting that the CEO compensation consists entirely of the salary, worth ₹12m.

On comparing similar-sized companies in the Indian Machinery industry with market capitalizations below ₹17b, we found that the median total CEO compensation was ₹4.8m. Hence, we can conclude that Sanjay Shah is remunerated higher than the industry median. What's more, Sanjay Shah holds ₹151m 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	₹12m	100%
Other	-	-	-
Total Compensation	₹12m	₹12m	100%

On an industry level, around 91% of total compensation represents salary and 9% is other remuneration. At the company level, Manugraph India pays Sanjay Shah solely through a salary, preferring to go down a conventional route. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Manugraph India Limited's Growth Numbers

Manugraph India Limited's earnings per share (EPS) grew 6.2% per year over the last three years. In the last year, its revenue is down 18%.

We generally like to see a little revenue growth, but the modest EPS growth gives us some relief. It's hard to reach a conclusion about business performance right now. This may be one to watch. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Manugraph India Limited Been A Good Investment?

Boasting a total shareholder return of 110% over three years, Manugraph India Limited has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

To Conclude...

Manugraph India rewards its CEO solely through a salary, ignoring non-salary benefits completely. Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus 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 an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. That's why we did our research, and identified 3 warning signs for Manugraph India (of which 2 are a bit unpleasant!) that you should know about in order to have a holistic understanding of the 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.