We Think Shareholders Will Probably Be Generous With Schaeffler India Limited's (NSE:SCHAEFFLER) CEO Compensation

Key Insights

• Schaeffler India will host its Annual General Meeting on 30th of April
• CEO Harsha Kadam's total compensation includes salary of ₹45.2m
• Total compensation is similar to the industry average
• Over the past three years, Schaeffler India's EPS grew by 14% and over the past three years, the total shareholder return was 50%

We've discovered 2 warning signs about Schaeffler India. View them for free.

We have been pretty impressed with the performance at Schaeffler India Limited (NSE:SCHAEFFLER) recently and CEO Harsha Kadam deserves a mention for their role in it. Shareholders will have this at the front of their minds in the upcoming AGM on 30th of April. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.

See our latest analysis for Schaeffler India

Comparing Schaeffler India Limited's CEO Compensation With The Industry

According to our data, Schaeffler India Limited has a market capitalization of ₹513b, and paid its CEO total annual compensation worth ₹56m over the year to December 2024. Notably, that's an increase of 35% over the year before. We note that the salary portion, which stands at ₹45.2m constitutes the majority of total compensation received by the CEO.

On comparing similar companies from the Indian Machinery industry with market caps ranging from ₹342b to ₹1.0t, we found that the median CEO total compensation was ₹70m. From this we gather that Harsha Kadam is paid around the median for CEOs in the industry. Furthermore, Harsha Kadam directly owns ₹1.6m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	₹45m	₹31m	81%
Other	₹10m	₹10m	19%
Total Compensation	₹56m	₹41m	100%

On an industry level, around 91% of total compensation represents salary and 9% is other remuneration. In Schaeffler India's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Schaeffler India Limited's Growth

Over the past three years, Schaeffler India Limited has seen its earnings per share (EPS) grow by 14% per year. It achieved revenue growth of 14% 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 decent revenue growth in the last year, suggesting the business is healthy and growing. 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 Schaeffler India Limited Been A Good Investment?

Most shareholders would probably be pleased with Schaeffler India Limited for providing a total return of 50% over three years. 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...

Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. That's why we did our research, and identified 2 warning signs for Schaeffler India (of which 1 is potentially serious!) that you should know about in order to have a holistic understanding of the stock.

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.