Shareholders Will Probably Hold Off On Increasing Revathi Equipment Limited's (NSE:REVATHI) CEO Compensation For The Time Being

Performance at Revathi Equipment Limited (NSE:REVATHI) has been reasonably good and CEO Abhishek Dalmia 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 27 September 2022. However, some shareholders will still be cautious of paying the CEO excessively.

Check out our latest analysis for Revathi Equipment

How Does Total Compensation For Abhishek Dalmia Compare With Other Companies In The Industry?

Our data indicates that Revathi Equipment Limited has a market capitalization of ₹3.1b, and total annual CEO compensation was reported as ₹13m for the year to March 2022. Notably, that's a decrease of 21% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at ₹5.1m.

In comparison with other companies in the industry with market capitalizations under ₹16b, the reported median total CEO compensation was ₹4.8m. This suggests that Abhishek Dalmia is paid more than the median for the industry.

Component	2022	2021	Proportion (2022)
Salary	₹5.1m	₹4.8m	40%
Other	₹7.6m	₹11m	60%
Total Compensation	₹13m	₹16m	100%

Talking in terms of the industry, salary represented approximately 91% of total compensation out of all the companies we analyzed, while other remuneration made up 9% of the pie. In Revathi Equipment's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Revathi Equipment Limited's Growth

Revathi Equipment Limited has seen its earnings per share (EPS) increase by 16% a year over the past three years. It achieved revenue growth of 48% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Revathi Equipment Limited Been A Good Investment?

Most shareholders would probably be pleased with Revathi Equipment Limited for providing a total return of 165% over three years. 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.

To Conclude...

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.

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. That's why we did some digging and identified 1 warning sign for Revathi Equipment that investors should think about before committing capital to this stock.

Switching gears from Revathi Equipment, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.