NRB Bearings Limited's (NSE:NRBBEARING) CEO Compensation Is Looking A Bit Stretched At The Moment

Key Insights

• NRB Bearings will host its Annual General Meeting on 11th of September
• Total pay for CEO Harshbeena Zaveri includes ₹27.6m salary
• The overall pay is 64% above the industry average
• NRB Bearings' EPS grew by 2.3% over the past three years while total shareholder return over the past three years was 82%

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Performance at NRB Bearings Limited (NSE:NRBBEARING) has been reasonably good and CEO Harshbeena Zaveri has done a decent job of steering the company in the right direction. 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 11th of September. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

See 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 ₹28b, and reported total annual CEO compensation of ₹33m for the year to March 2025. Notably, that's a decrease of 11% over the year before. In particular, the salary of ₹27.6m, makes up a huge portion of the total compensation being paid to the CEO.

On examining similar-sized companies in the Indian Machinery industry with market capitalizations between ₹18b and ₹71b, we discovered that the median CEO total compensation of that group was ₹20m. This suggests that Harshbeena Zaveri is paid more than the median for the industry. Furthermore, Harshbeena Zaveri directly owns ₹3.8b worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, around 97% of total compensation represents salary and 3% is other remuneration. NRB Bearings pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

NRB Bearings Limited's Growth

NRB Bearings Limited's earnings per share (EPS) grew 2.3% per year over the last three years. It achieved revenue growth of 9.7% over the last year.

We'd prefer higher revenue growth, but we're happy with the modest EPS growth. Considering these factors we'd say performance has been pretty decent, though not amazing. 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?

Boasting a total shareholder return of 82% over three years, NRB Bearings Limited has done well by shareholders. 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...

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.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 3 warning signs for NRB Bearings 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.