Increases to AYM Syntex Limited's (NSE:AYMSYNTEX) CEO Compensation Might Cool off for now

CEO Abhishek Mandawewala has done a decent job of delivering relatively good performance at AYM Syntex Limited (NSE:AYMSYNTEX) recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 29 September 2021. However, some shareholders may still want to keep CEO compensation within reason.

See our latest analysis for AYM Syntex

Comparing AYM Syntex Limited's CEO Compensation With the industry

Our data indicates that AYM Syntex Limited has a market capitalization of ₹5.2b, and total annual CEO compensation was reported as ₹7.7m for the year to March 2021. That's a modest increase of 5.2% on the prior year. In particular, the salary of ₹6.07m, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the industry with market capitalizations below ₹15b, reported a median total CEO compensation of ₹3.3m. This suggests that Abhishek Mandawewala is paid more than the median for the industry.

Component	2021	2020	Proportion (2021)
Salary	₹6.1m	₹7.0m	78%
Other	₹1.7m	₹360k	22%
Total Compensation	₹7.7m	₹7.4m	100%

On an industry level, it's fascinating to see that all of total compensation represents salary and non-salary benefits do not factor into the equation at all. AYM Syntex sets aside a smaller share of compensation for salary, in comparison to the overall industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

AYM Syntex Limited's Growth

Over the past three years, AYM Syntex Limited has seen its earnings per share (EPS) grow by 63% per year. It achieved revenue growth of 34% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. 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?

Most shareholders would probably be pleased with AYM Syntex Limited for providing a total return of 182% 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 up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay 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.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. That's why we did our research, and identified 4 warning signs for AYM Syntex (of which 2 are concerning!) that you should know about in order to have a holistic understanding of the stock.

Important note: AYM Syntex 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.

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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.
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