It Looks Like Shareholders Would Probably Approve SML Isuzu Limited's (NSE:SMLISUZU) CEO Compensation Package

Key Insights

• SML Isuzu's Annual General Meeting to take place on 20th of September
• CEO Junya Yamanishi's total compensation includes salary of ₹6.93m
• The overall pay is comparable to the industry average
• SML Isuzu's EPS grew by 115% over the past three years while total shareholder return over the past three years was 261%

The performance at SML Isuzu Limited (NSE:SMLISUZU) has been quite strong recently and CEO Junya Yamanishi has played a role in it. Coming up to the next AGM on 20th of September, shareholders would be keeping this in mind. 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. In light of the great performance, we discuss the case why we think CEO compensation is not excessive.

View our latest analysis for SML Isuzu

How Does Total Compensation For Junya Yamanishi Compare With Other Companies In The Industry?

At the time of writing, our data shows that SML Isuzu Limited has a market capitalization of ₹29b, and reported total annual CEO compensation of ₹15m for the year to March 2024. We note that's an increase of 83% above last year. While we always look at total compensation first, our analysis shows that the salary component is less, at ₹6.9m.

On comparing similar companies from the Indian Machinery industry with market caps ranging from ₹17b to ₹67b, we found that the median CEO total compensation was ₹18m. From this we gather that Junya Yamanishi is paid around the median for CEOs in the industry.

Component	2024	2023	Proportion (2024)
Salary	₹6.9m	₹5.5m	46%
Other	₹8.2m	₹2.7m	54%
Total Compensation	₹15m	₹8.3m	100%

On an industry level, around 90% of total compensation represents salary and 10% is other remuneration. SML Isuzu pays a modest slice of remuneration through salary, as compared 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.

A Look at SML Isuzu Limited's Growth Numbers

SML Isuzu Limited has seen its earnings per share (EPS) increase by 115% a year over the past three years. Its revenue is up 18% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has SML Isuzu Limited Been A Good Investment?

Most shareholders would probably be pleased with SML Isuzu Limited for providing a total return of 261% 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. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 2 warning signs (and 1 which can't be ignored) in SML Isuzu we think you should know about.

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.