Here's Why We Think Bang Overseas Limited's (NSE:BANG) CEO Compensation Looks Fair for the time being

Key Insights

• Bang Overseas' Annual General Meeting to take place on 27th of September
• Salary of ₹4.39m is part of CEO Brijgopal Bang's total remuneration
• Total compensation is similar to the industry average
• Bang Overseas' total shareholder return over the past three years was 63% while its EPS was down 111% over the past three years

Under the guidance of CEO Brijgopal Bang, Bang Overseas Limited (NSE:BANG) has performed reasonably well recently. As shareholders go into the upcoming AGM on 27th of September, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. Here is our take on why we think the CEO compensation looks appropriate.

View our latest analysis for Bang Overseas

Comparing Bang Overseas Limited's CEO Compensation With The Industry

According to our data, Bang Overseas Limited has a market capitalization of ₹789m, and paid its CEO total annual compensation worth ₹4.4m over the year to March 2024. This was the same amount the CEO received in the prior year. Notably, the salary of ₹4.4m is the entirety of the CEO compensation.

On comparing similar-sized companies in the Indian Luxury industry with market capitalizations below ₹17b, we found that the median total CEO compensation was ₹3.6m. This suggests that Bang Overseas remunerates its CEO largely in line with the industry average. Moreover, Brijgopal Bang also holds ₹97m worth of Bang Overseas 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	₹4.4m	₹4.4m	100%
Other	-	-	-
Total Compensation	₹4.4m	₹4.4m	100%

Talking in terms of the industry, salary represented approximately 98% of total compensation out of all the companies we analyzed, while other remuneration made up 2% of the pie. On a company level, Bang Overseas prefers to reward its CEO through a salary, opting not to pay Brijgopal Bang through non-salary benefits. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Bang Overseas Limited's Growth

Over the last three years, Bang Overseas Limited has shrunk its earnings per share by 111% per year. Its revenue is up 21% over the last year.

Investors would be a bit wary of companies that have lower EPS But in contrast the revenue growth is strong, suggesting future potential for EPS growth. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. 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 Bang Overseas Limited Been A Good Investment?

Most shareholders would probably be pleased with Bang Overseas Limited for providing a total return of 63% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

Bang Overseas rewards its CEO solely through a salary, ignoring non-salary benefits completely. Some shareholders will be pleased by the relatively good results, however, the results could still be improved. Despite robust revenue growth, until EPS growth improves, shareholders may be hesitant to increase CEO pay by too much.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 2 warning signs for Bang Overseas that you should be aware of before investing.

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.