We Discuss Why The CEO Of Siemens Limited (NSE:SIEMENS) Is Due For A Pay Rise

Key Insights

• Siemens to hold its Annual General Meeting on 13th of February
• Salary of ₹37.3m is part of CEO Sunil Mathur's total remuneration
• The total compensation is 64% less than the average for the industry
• Siemens' EPS grew by 37% over the past three years while total shareholder return over the past three years was 130%

The impressive results at Siemens Limited (NSE:SIEMENS) recently will be great news for shareholders. At the upcoming AGM on 13th of February, they will get a chance to hear the board review the company results, discuss future strategy and cast their vote on any resolutions such as executive remuneration. Let's take a look at why we think the CEO has done a good job and we'll present the case for a bump in pay.

See our latest analysis for Siemens

How Does Total Compensation For Sunil Mathur Compare With Other Companies In The Industry?

According to our data, Siemens Limited has a market capitalization of ₹1.5t, and paid its CEO total annual compensation worth ₹245m over the year to September 2023. We note that's an increase of 31% above last year. While we always look at total compensation first, our analysis shows that the salary component is less, at ₹37m.

For comparison, other companies in the India Industrials industry with market capitalizations above ₹664b, reported a median total CEO compensation of ₹679m. That is to say, Sunil Mathur is paid under the industry median.

Component	2023	2022	Proportion (2023)
Salary	₹37m	₹23m	15%
Other	₹208m	₹165m	85%
Total Compensation	₹245m	₹188m	100%

Talking in terms of the industry, salary represented approximately 71% of total compensation out of all the companies we analyzed, while other remuneration made up 29% of the pie. Siemens sets aside a smaller share of compensation for salary, in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at Siemens Limited's Growth Numbers

Siemens Limited's earnings per share (EPS) grew 37% per year over the last three years. Its revenue is up 21% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. 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 Siemens Limited Been A Good Investment?

We think that the total shareholder return of 130%, over three years, would leave most Siemens 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...

The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in 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.

Whatever your view on compensation, you might want to check if insiders are buying or selling Siemens shares (free trial).

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.