It's Unlikely That Manugraph India Limited's (NSE:MANUGRAPH) CEO Will See A Huge Pay Rise This Year

Key Insights

• Manugraph India to hold its Annual General Meeting on 27th of September
• CEO Sanjay Shah's total compensation includes salary of ₹11.9m
• Total compensation is 143% above industry average
• Manugraph India's EPS grew by 39% over the past three years while total shareholder return over the past three years was 137%

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. As shareholders go into the upcoming AGM on 27th of September, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders will still be cautious of paying the CEO excessively.

See our latest analysis for Manugraph India

How Does Total Compensation For Sanjay Shah Compare With Other Companies In The Industry?

Our data indicates that Manugraph India Limited has a market capitalization of ₹669m, and total annual CEO compensation was reported as ₹12m for the year to March 2023. That's mostly flat as compared to the prior year's compensation. It is worth noting that the CEO compensation consists entirely of the salary, worth ₹12m.

For comparison, other companies in the Indian Machinery industry with market capitalizations below ₹17b, reported a median total CEO compensation of ₹4.9m. Accordingly, our analysis reveals that Manugraph India Limited pays Sanjay Shah north of the industry median. What's more, Sanjay Shah holds ₹93m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2023	2022	Proportion (2023)
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. On a company level, Manugraph India prefers to reward its CEO through a salary, opting not to pay Sanjay Shah through non-salary benefits. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at Manugraph India Limited's Growth Numbers

Over the past three years, Manugraph India Limited has seen its earnings per share (EPS) grow by 39% per year. It achieved revenue growth of 75% 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 Manugraph India Limited Been A Good Investment?

Boasting a total shareholder return of 137% over three years, Manugraph India Limited has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar 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, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 3 warning signs for Manugraph India that investors should look into moving forward.

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.