We think Bata India Limited's (NSE:BATAINDIA) CEO May Struggle To See Much Of A Pay Rise This Year

Key Insights

• Bata India will host its Annual General Meeting on 7th of August
• Total pay for CEO Gunjan Dinesh Shah includes ₹35.9m salary
• Total compensation is similar to the industry average
• Bata India's EPS grew by 63% over the past three years while total shareholder return over the past three years was 0.8%

CEO Gunjan Dinesh Shah has done a decent job of delivering relatively good performance at Bata India Limited (NSE:BATAINDIA) recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 7th of August. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.

Check out our latest analysis for Bata India

How Does Total Compensation For Gunjan Dinesh Shah Compare With Other Companies In The Industry?

At the time of writing, our data shows that Bata India Limited has a market capitalization of ₹205b, and reported total annual CEO compensation of ₹56m for the year to March 2024. We note that's an increase of 12% above last year. We note that the salary portion, which stands at ₹35.9m constitutes the majority of total compensation received by the CEO.

On examining similar-sized companies in the Indian Luxury industry with market capitalizations between ₹167b and ₹536b, we discovered that the median CEO total compensation of that group was ₹51m. From this we gather that Gunjan Dinesh Shah is paid around the median for CEOs in the industry.

Component	2024	2023	Proportion (2024)
Salary	₹36m	₹38m	65%
Other	₹20m	₹12m	35%
Total Compensation	₹56m	₹50m	100%

Talking in terms of the industry, salary represented approximately 99% of total compensation out of all the companies we analyzed, while other remuneration made up 0.97228232% of the pie. Bata 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.

A Look at Bata India Limited's Growth Numbers

Bata India Limited has seen its earnings per share (EPS) increase by 63% a year over the past three years. The trailing twelve months of revenue was pretty much the same as the prior period.

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. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Bata India Limited Been A Good Investment?

Bata India Limited has generated a total shareholder return of 0.8% over three years, so most shareholders wouldn't be too disappointed. Although, there's always room to improve. In light of that, investors might probably want to see an improvement on their returns before they feel generous about increasing the CEO remuneration.

To Conclude...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. However, we still think that any proposed increase in CEO compensation will be examined closely to make sure the compensation is appropriate and linked to performance.

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 Bata India that investors should think about before committing capital to this 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.

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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.

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