Here's Why Shareholders Will Not Be Complaining About Amber Enterprises India Limited's (NSE:AMBER) CEO Pay Packet

Key Insights

• Amber Enterprises India will host its Annual General Meeting on 9th of August
• Total pay for CEO Jasbir Singh includes ₹24.7m salary
• The total compensation is similar to the average for the industry
• Amber Enterprises India's EPS grew by 11% over the past three years while total shareholder return over the past three years was 47%

We have been pretty impressed with the performance at Amber Enterprises India Limited (NSE:AMBER) recently and CEO Jasbir Singh deserves a mention for their role in it. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 9th of August. 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 Amber Enterprises India

How Does Total Compensation For Jasbir Singh Compare With Other Companies In The Industry?

According to our data, Amber Enterprises India Limited has a market capitalization of ₹148b, and paid its CEO total annual compensation worth ₹30m over the year to March 2024. Notably, that's a decrease of 12% over the year before. Notably, the salary which is ₹24.7m, represents most of the total compensation being paid.

On examining similar-sized companies in the Indian Consumer Durables industry with market capitalizations between ₹84b and ₹268b, we discovered that the median CEO total compensation of that group was ₹29m. This suggests that Amber Enterprises India remunerates its CEO largely in line with the industry average. Furthermore, Jasbir Singh directly owns ₹31b worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	₹25m	₹34m	83%
Other	₹5.0m	-	17%
Total Compensation	₹30m	₹34m	100%

On an industry level, roughly 94% of total compensation represents salary and 6% is other remuneration. Amber Enterprises India sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Amber Enterprises India Limited's Growth

Amber Enterprises India Limited has seen its earnings per share (EPS) increase by 11% a year over the past three years. It achieved revenue growth of 9.2% 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 Amber Enterprises India Limited Been A Good Investment?

Boasting a total shareholder return of 47% over three years, Amber Enterprises India Limited has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in 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 compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 1 warning sign for Amber Enterprises India that you should be aware of before investing.

Important note: Amber Enterprises India is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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.

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