AYM Syntex Limited's (NSE:AYMSYNTEX) CEO Compensation Is Looking A Bit Stretched At The Moment

Key Insights

• AYM Syntex to hold its Annual General Meeting on 29th of September
• CEO Abhishek Mandawewala's total compensation includes salary of ₹22.1m
• The overall pay is 617% above the industry average
• Over the past three years, AYM Syntex's EPS fell by 53% and over the past three years, the total shareholder return was 157%

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AYM Syntex Limited (NSE:AYMSYNTEX) has exhibited strong share price growth in the past few years. However, its earnings growth has not kept up, suggesting that there may be something amiss. Some of these issues will occupy shareholders' minds as the AGM rolls around on 29th of September. One way that shareholders can influence managerial decisions is through voting on CEO and executive remuneration packages, which studies show could impact company performance. From what we gathered, we think shareholders should be wary of raising CEO compensation until the company shows some marked improvement.

View our latest analysis for AYM Syntex

How Does Total Compensation For Abhishek Mandawewala Compare With Other Companies In The Industry?

According to our data, AYM Syntex Limited has a market capitalization of ₹11b, and paid its CEO total annual compensation worth ₹26m over the year to March 2025. That's a notable increase of 23% on last year. We note that the salary portion, which stands at ₹22.1m constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the Indian Luxury industry with market capitalizations under ₹18b, the reported median total CEO compensation was ₹3.6m. Hence, we can conclude that Abhishek Mandawewala is remunerated higher than the industry median.

On an industry level, roughly 99% of total compensation represents salary and 1% is other remuneration. It's interesting to note that AYM Syntex allocates a smaller portion of compensation to salary 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.

AYM Syntex Limited's Growth

Over the last three years, AYM Syntex Limited has shrunk its earnings per share by 53% per year. It achieved revenue growth of 6.0% over the last year.

Overall this is not a very positive result for shareholders. And the modest revenue growth over 12 months isn't much comfort against the reduced EPS. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has AYM Syntex Limited Been A Good Investment?

We think that the total shareholder return of 157%, over three years, would leave most AYM Syntex Limited shareholders smiling. 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...

Despite the strong returns on shareholders' investments, the fact that earnings have failed to grow makes us skeptical about the stock keeping up its current momentum. Shareholders should make the most of the coming opportunity to question the board on key concerns they may have and revisit their investment thesis with regards to the company.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 1 warning sign for AYM Syntex that investors should be aware of in a dynamic business environment.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.