Increases to NRB Bearings Limited's (NSE:NRBBEARING) CEO Compensation Might Cool off for now

Key Insights

• NRB Bearings' Annual General Meeting to take place on 20th of September
• Total pay for CEO Harshbeena Zaveri includes ₹25.1m salary
• The overall pay is 104% above the industry average
• NRB Bearings' total shareholder return over the past three years was 140% while its EPS grew by 43% over the past three years

CEO Harshbeena Zaveri has done a decent job of delivering relatively good performance at NRB Bearings Limited (NSE:NRBBEARING) 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 20th of September. However, some shareholders may still want to keep CEO compensation within reason.

Check out our latest analysis for NRB Bearings

How Does Total Compensation For Harshbeena Zaveri Compare With Other Companies In The Industry?

At the time of writing, our data shows that NRB Bearings Limited has a market capitalization of ₹31b, and reported total annual CEO compensation of ₹38m for the year to March 2024. That's a notable decrease of 27% on last year. In particular, the salary of ₹25.1m, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the Indian Machinery industry with market capitalizations ranging between ₹17b and ₹67b had a median total CEO compensation of ₹18m. Hence, we can conclude that Harshbeena Zaveri is remunerated higher than the industry median. Furthermore, Harshbeena Zaveri directly owns ₹3.7b worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	₹25m	₹43m	67%
Other	₹13m	₹8.6m	33%
Total Compensation	₹38m	₹51m	100%

On an industry level, roughly 90% of total compensation represents salary and 10% is other remuneration. NRB Bearings sets aside a smaller share of compensation for salary, in comparison to the overall industry. 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.

NRB Bearings Limited's Growth

Over the past three years, NRB Bearings Limited has seen its earnings per share (EPS) grow by 43% per year. It achieved revenue growth of 1.7% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has NRB Bearings Limited Been A Good Investment?

We think that the total shareholder return of 140%, over three years, would leave most NRB Bearings Limited shareholders smiling. 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 up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay 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.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We did our research and identified 3 warning signs (and 1 which is concerning) in NRB Bearings we think you should know about.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.