Shareholders May Be More Conservative With Mold-Tek Technologies Limited's (NSE:MOLDTECH) CEO Compensation For Now

Under the guidance of CEO Lakshmana Janumahanti, Mold-Tek Technologies Limited (NSE:MOLDTECH) has performed reasonably well 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 30 September 2022. However, some shareholders will still be cautious of paying the CEO excessively.

Check out our latest analysis for Mold-Tek Technologies

Comparing Mold-Tek Technologies Limited's CEO Compensation With The Industry

According to our data, Mold-Tek Technologies Limited has a market capitalization of ₹2.6b, and paid its CEO total annual compensation worth ₹7.6m over the year to March 2022. That's a modest increase of 6.3% on the prior year. In particular, the salary of ₹3.83m, makes up a fairly large portion of the total compensation being paid to the CEO.

For comparison, other companies in the industry with market capitalizations below ₹16b, reported a median total CEO compensation of ₹3.1m. Accordingly, our analysis reveals that Mold-Tek Technologies Limited pays Lakshmana Janumahanti north of the industry median. Furthermore, Lakshmana Janumahanti directly owns ₹207m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2022	2021	Proportion (2022)
Salary	₹3.8m	₹2.9m	50%
Other	₹3.8m	₹4.3m	50%
Total Compensation	₹7.6m	₹7.2m	100%

Talking in terms of the industry, salary represented approximately 97% of total compensation out of all the companies we analyzed, while other remuneration made up 3% of the pie. Mold-Tek Technologies 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.

Mold-Tek Technologies Limited's Growth

Mold-Tek Technologies Limited saw earnings per share stay pretty flat over the last three years. Its revenue is up 22% over the last year.

We would argue that the modest growth in revenue is a notable positive. And the improvement in EPSis modest but respectable. So while we'd stop just short of calling this a top performer, but we think it is well worth watching. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Mold-Tek Technologies Limited Been A Good Investment?

We think that the total shareholder return of 81%, over three years, would leave most Mold-Tek Technologies Limited shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

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 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 2 warning signs for Mold-Tek Technologies that investors should be aware of in a dynamic business environment.

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.