Shareholders Will Probably Hold Off On Increasing Surana Telecom and Power Limited's (NSE:SURANAT&P) CEO Compensation For The Time Being

Key Insights

• Surana Telecom and Power's Annual General Meeting to take place on 26th of September
• CEO Narender Surana's total compensation includes salary of ₹5.60m
• Total compensation is 38% above industry average
• Over the past three years, Surana Telecom and Power's EPS grew by 37% and over the past three years, the total shareholder return was 199%

Under the guidance of CEO Narender Surana, Surana Telecom and Power Limited (NSE:SURANAT&P) has performed reasonably well recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 26th of September. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

View our latest analysis for Surana Telecom and Power

Comparing Surana Telecom and Power Limited's CEO Compensation With The Industry

According to our data, Surana Telecom and Power Limited has a market capitalization of ₹1.6b, and paid its CEO total annual compensation worth ₹8.4m over the year to March 2023. This was the same as last year. Notably, the salary which is ₹5.60m, represents most of the total compensation being paid.

For comparison, other companies in the Indian Electrical industry with market capitalizations below ₹17b, reported a median total CEO compensation of ₹6.1m. Hence, we can conclude that Narender Surana is remunerated higher than the industry median. What's more, Narender Surana holds ₹511m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2023	2022	Proportion (2023)
Salary	₹5.6m	₹5.6m	67%
Other	₹2.8m	₹2.8m	33%
Total Compensation	₹8.4m	₹8.4m	100%

Speaking on an industry level, nearly 84% of total compensation represents salary, while the remainder of 16% is other remuneration. It's interesting to note that Surana Telecom and Power allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Surana Telecom and Power Limited's Growth Numbers

Surana Telecom and Power Limited has seen its earnings per share (EPS) increase by 37% a year over the past three years. Its revenue is down 15% over the previous year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. 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 Surana Telecom and Power Limited Been A Good Investment?

Most shareholders would probably be pleased with Surana Telecom and Power Limited for providing a total return of 199% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

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. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. That's why we did our research, and identified 4 warning signs for Surana Telecom and Power (of which 2 are a bit unpleasant!) that you should know about in order to have a holistic understanding of the stock.

Switching gears from Surana Telecom and Power, 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.