We Think Some Shareholders May Hesitate To Increase Semac Consultants Limited's (NSE:REVATHI) CEO Compensation

Key Insights

• Semac Consultants to hold its Annual General Meeting on 27th of September
• Total pay for CEO Abhishek Dalmia includes ₹4.56m salary
• The overall pay is 182% above the industry average
• Semac Consultants' EPS grew by 8.3% over the past three years while total shareholder return over the past three years was 355%

Under the guidance of CEO Abhishek Dalmia, Semac Consultants Limited (NSE:REVATHI) 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 27th of September. However, some shareholders may still want to keep CEO compensation within reason.

View our latest analysis for Semac Consultants

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

Our data indicates that Semac Consultants Limited has a market capitalization of ₹6.7b, and total annual CEO compensation was reported as ₹14m for the year to March 2023. Notably, that's an increase of 8.6% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at ₹4.6m.

For comparison, other companies in the Indian Machinery industry with market capitalizations below ₹17b, reported a median total CEO compensation of ₹4.9m. This suggests that Abhishek Dalmia is paid more than the median for the industry.

Component	2023	2022	Proportion (2023)
Salary	₹4.6m	₹5.1m	33%
Other	₹9.2m	₹7.6m	67%
Total Compensation	₹14m	₹13m	100%

On an industry level, around 91% of total compensation represents salary and 9% is other remuneration. Semac Consultants pays a modest slice of remuneration through salary, as compared to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Semac Consultants Limited's Growth

Over the past three years, Semac Consultants Limited has seen its earnings per share (EPS) grow by 8.3% per year. It achieved revenue growth of 128% over the last year.

It's hard to interpret the strong revenue growth as anything other than a positive. And in that context, the modest EPS improvement certainly isn't shabby. We'd stop short of saying the business performance is amazing, but there are enough positives to justify further research, or even adding the stock to your watch-list. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Semac Consultants Limited Been A Good Investment?

We think that the total shareholder return of 355%, over three years, would leave most Semac Consultants Limited shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

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. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are 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 Semac Consultants that investors should think about before committing capital to this stock.

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.