Shareholders May Not Be So Generous With Bhartiya International Ltd.'s (NSE:BIL) CEO Compensation And Here's Why

Key Insights

• Bhartiya International's Annual General Meeting to take place on 27th of September
• Total pay for CEO Manoj Khattar includes ₹9.14m salary
• The overall pay is 154% above the industry average
• Bhartiya International's total shareholder return over the past three years was 165% while its EPS grew by 37% over the past three years

Under the guidance of CEO Manoj Khattar, Bhartiya International Ltd. (NSE:BIL) 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. However, some shareholders may still want to keep CEO compensation within reason.

Check out our latest analysis for Bhartiya International

How Does Total Compensation For Manoj Khattar Compare With Other Companies In The Industry?

At the time of writing, our data shows that Bhartiya International Ltd. has a market capitalization of ₹7.2b, and reported total annual CEO compensation of ₹9.1m for the year to March 2024. Notably, that's an increase of 12% over the year before. It is worth noting that the CEO compensation consists entirely of the salary, worth ₹9.1m.

For comparison, other companies in the Indian Luxury industry with market capitalizations below ₹17b, reported a median total CEO compensation of ₹3.6m. Accordingly, our analysis reveals that Bhartiya International Ltd. pays Manoj Khattar north of the industry median.

Component	2024	2023	Proportion (2024)
Salary	₹9.1m	₹8.1m	100%
Other	-	-	-
Total Compensation	₹9.1m	₹8.1m	100%

On an industry level, around 98% of total compensation represents salary and 2% is other remuneration. Speaking on a company level, Bhartiya International prefers to tread along a traditional path, disbursing all compensation through a salary. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Bhartiya International Ltd.'s Growth Numbers

Bhartiya International Ltd. has seen its earnings per share (EPS) increase by 37% a year over the past three years. In the last year, its revenue is up 12%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Bhartiya International Ltd. Been A Good Investment?

Most shareholders would probably be pleased with Bhartiya International Ltd. for providing a total return of 165% 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...

Bhartiya International pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. 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. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

CEO pay is simply one of the many factors that need to be considered while examining business performance. In our study, we found 2 warning signs for Bhartiya International you should be aware of, and 1 of them can't be ignored.

Switching gears from Bhartiya International, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.