It's Unlikely That Murudeshwar Ceramics Ltd.'s (NSE:MURUDCERA) CEO Will See A Huge Pay Rise This Year

Key Insights

• Murudeshwar Ceramics will host its Annual General Meeting on 22nd of September
• Total pay for CEO Satish Shetty includes ₹6.00m salary
• The total compensation is 67% higher than the average for the industry
• Murudeshwar Ceramics' total shareholder return over the past three years was 169% while its EPS grew by 104% over the past three years

Under the guidance of CEO Satish Shetty, Murudeshwar Ceramics Ltd. (NSE:MURUDCERA) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 22nd of September. However, some shareholders will still be cautious of paying the CEO excessively.

See our latest analysis for Murudeshwar Ceramics

Comparing Murudeshwar Ceramics Ltd.'s CEO Compensation With The Industry

Our data indicates that Murudeshwar Ceramics Ltd. has a market capitalization of ₹2.4b, and total annual CEO compensation was reported as ₹7.2m for the year to March 2023. This was the same as last year. In particular, the salary of ₹6.00m, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar-sized companies in the Indian Building industry with market capitalizations below ₹17b, we found that the median total CEO compensation was ₹4.3m. Accordingly, our analysis reveals that Murudeshwar Ceramics Ltd. pays Satish Shetty north of the industry median. What's more, Satish Shetty holds ₹91m 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	₹6.0m	₹6.0m	83%
Other	₹1.2m	₹1.2m	17%
Total Compensation	₹7.2m	₹7.2m	100%

On an industry level, around 97% of total compensation represents salary and 3% is other remuneration. It's interesting to note that Murudeshwar Ceramics allocates a smaller portion of compensation to salary in comparison to the broader industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Murudeshwar Ceramics Ltd.'s Growth Numbers

Murudeshwar Ceramics Ltd.'s earnings per share (EPS) grew 104% per year over the last three years. Its revenue is up 30% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Murudeshwar Ceramics Ltd. Been A Good Investment?

Boasting a total shareholder return of 169% over three years, Murudeshwar Ceramics Ltd. 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...

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. 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 can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 2 warning signs for Murudeshwar Ceramics that you should be aware of before investing.

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.