We Think Antony Waste Handling Cell Limited's (NSE:AWHCL) CEO Compensation Looks Fair

Key Insights

• Antony Waste Handling Cell will host its Annual General Meeting on 25th of September
• Salary of ₹13.8m is part of CEO Jose Kallarakal's total remuneration
• Total compensation is similar to the industry average
• Over the past three years, Antony Waste Handling Cell's EPS grew by 14% and over the past three years, the total shareholder return was 76%

We have been pretty impressed with the performance at Antony Waste Handling Cell Limited (NSE:AWHCL) recently and CEO Jose Kallarakal deserves a mention for their role in it. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 25th of September. The focus will probably be on the future company strategy as shareholders cast their votes on resolutions such as executive remuneration and other matters. Here is our take on why we think CEO compensation is not extravagant.

View our latest analysis for Antony Waste Handling Cell

Comparing Antony Waste Handling Cell Limited's CEO Compensation With The Industry

According to our data, Antony Waste Handling Cell Limited has a market capitalization of ₹20b, and paid its CEO total annual compensation worth ₹23m over the year to March 2024. Notably, that's an increase of 12% over the year before. Notably, the salary which is ₹13.8m, represents most of the total compensation being paid.

For comparison, other companies in the Indian Commercial Services industry with market capitalizations ranging between ₹8.4b and ₹33b had a median total CEO compensation of ₹19m. From this we gather that Jose Kallarakal is paid around the median for CEOs in the industry. Moreover, Jose Kallarakal also holds ₹4.0b worth of Antony Waste Handling Cell stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2024	2023	Proportion (2024)
Salary	₹14m	₹12m	61%
Other	₹8.7m	₹8.1m	39%
Total Compensation	₹23m	₹20m	100%

Talking in terms of the industry, salary represents all of total compensation among the companies we analyzed, while other remuneration is, interestingly, completely ignored. In Antony Waste Handling Cell'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.

Antony Waste Handling Cell Limited's Growth

Over the past three years, Antony Waste Handling Cell Limited has seen its earnings per share (EPS) grow by 14% per year. Its revenue is up 4.3% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Antony Waste Handling Cell Limited Been A Good Investment?

We think that the total shareholder return of 76%, over three years, would leave most Antony Waste Handling Cell Limited shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

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 pay is simply one of the many factors that need to be considered while examining business performance. That's why we did our research, and identified 2 warning signs for Antony Waste Handling Cell (of which 1 is concerning!) that you should know about in order to have a holistic understanding of the stock.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.