This Is Why We Think Rolex Rings Limited's (NSE:ROLEXRINGS) CEO Might Get A Pay Rise Approved By Shareholders

Key Insights

• Rolex Rings will host its Annual General Meeting on 5th of September
• Total pay for CEO Manesh Madeka includes ₹11.4m salary
• The total compensation is 57% less than the average for the industry
• Rolex Rings' total shareholder return over the past three years was 127% while its EPS grew by 4.8% over the past three years

Shareholders will be pleased by the robust performance of Rolex Rings Limited (NSE:ROLEXRINGS) recently and this will be kept in mind in the upcoming AGM on 5th of September. This would also be a chance for them to hear the board review the financial results, discuss future company strategy to further improve the business and vote on any resolutions such as executive remuneration. Here is our take on why we think CEO compensation is fair and may even warrant a raise.

View our latest analysis for Rolex Rings

Comparing Rolex Rings Limited's CEO Compensation With The Industry

Our data indicates that Rolex Rings Limited has a market capitalization of ₹67b, and total annual CEO compensation was reported as ₹11m for the year to March 2024. We note that's an increase of 19% above last year. Notably, the salary of ₹11m is the entirety of the CEO compensation.

On examining similar-sized companies in the Indian Machinery industry with market capitalizations between ₹34b and ₹134b, we discovered that the median CEO total compensation of that group was ₹27m. Accordingly, Rolex Rings pays its CEO under the industry median. Moreover, Manesh Madeka also holds ₹8.8b worth of Rolex Rings stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2024	2023	Proportion (2024)
Salary	₹11m	₹9.6m	100%
Other	-	-	-
Total Compensation	₹11m	₹9.6m	100%

On an industry level, roughly 91% of total compensation represents salary and 9% is other remuneration. On a company level, Rolex Rings prefers to reward its CEO through a salary, opting not to pay Manesh Madeka through non-salary benefits. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Rolex Rings Limited's Growth Numbers

Rolex Rings Limited's earnings per share (EPS) grew 4.8% per year over the last three years. In the last year, its revenue is up 1.3%.

We would argue that the improvement in revenue is good, but isn't particularly impressive, but we're happy with the modest EPS growth. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Rolex Rings Limited Been A Good Investment?

We think that the total shareholder return of 127%, over three years, would leave most Rolex Rings Limited shareholders smiling. 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...

Rolex Rings rewards its CEO solely through a salary, ignoring non-salary benefits completely. While the company seems to be headed in the right direction performance-wise, there's always room for improvement. Assuming the business continues to grow at a good clip, few shareholders would raise any objections to the CEO's remuneration. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

Shareholders may want to check for free if Rolex Rings insiders are buying or selling shares.

Important note: Rolex Rings is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.