Why We Think Siemens Limited's (NSE:SIEMENS) CEO Compensation Is Not Excessive At All

Under the guidance of CEO Sunil Mathur, Siemens Limited (NSE:SIEMENS) has performed reasonably well recently. As shareholders go into the upcoming AGM on 14 February 2023, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.

See our latest analysis for Siemens

Comparing Siemens Limited's CEO Compensation With The Industry

At the time of writing, our data shows that Siemens Limited has a market capitalization of ₹1.1t, and reported total annual CEO compensation of ₹188m for the year to September 2022. We note that's a decrease of 16% compared to last year. We think total compensation is more important but our data shows that the CEO salary is lower, at ₹23m.

On comparing similar companies in the India Industrials industry with market capitalizations above ₹663b, we found that the median total CEO compensation was ₹191m. From this we gather that Sunil Mathur is paid around the median for CEOs in the industry.

Component	2022	2021	Proportion (2022)
Salary	₹23m	₹23m	12%
Other	₹165m	₹201m	88%
Total Compensation	₹188m	₹223m	100%

On an industry level, roughly 89% of total compensation represents salary and 11% is other remuneration. It's interesting to note that Siemens allocates a smaller portion of compensation to salary in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Siemens Limited's Growth

Over the past three years, Siemens Limited has seen its earnings per share (EPS) grow by 3.6% per year. It achieved revenue growth of 22% over the last year.

We think the revenue growth is good. And the modest growth in EPS isn't bad, either. Although we'll stop short of calling the stock a top performer, we think the company has potential. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Siemens Limited Been A Good Investment?

Most shareholders would probably be pleased with Siemens Limited for providing a total return of 111% 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...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. In saying that, any proposed increase to CEO compensation will still be assessed on how reasonable it is based on performance and industry benchmarks.

CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Siemens (free visualization of insider trades).

Switching gears from Siemens, 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.