We Think Some Shareholders May Hesitate To Increase BSL Limited's (NSE:BSL) CEO Compensation

Performance at BSL Limited (NSE:BSL) has been reasonably good and CEO Arun Churiwal has done a decent job of steering the company in the right direction. 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 28 September 2021. However, some shareholders will still be cautious of paying the CEO excessively.

Check out our latest analysis for BSL

Comparing BSL Limited's CEO Compensation With the industry

Our data indicates that BSL Limited has a market capitalization of ₹622m, and total annual CEO compensation was reported as ₹11m for the year to March 2021. That's a notable decrease of 11% on last year. In particular, the salary of ₹6.78m, makes up a fairly large portion of the total compensation being paid to the CEO.

On comparing similar-sized companies in the industry with market capitalizations below ₹15b, we found that the median total CEO compensation was ₹3.3m. Accordingly, our analysis reveals that BSL Limited pays Arun Churiwal north of the industry median. What's more, Arun Churiwal holds ₹65m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2021	2020	Proportion (2021)
Salary	₹6.8m	₹6.7m	59%
Other	₹4.7m	₹6.3m	41%
Total Compensation	₹11m	₹13m	100%

Speaking on an industry level, all of total compensation represents salary, while non-salary remuneration is completely ignored. It's interesting to note that BSL allocates a smaller portion of compensation to salary in comparison to the broader 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.

BSL Limited's Growth

BSL Limited's earnings per share (EPS) grew 96% per year over the last three years. In the last year, its revenue is up 6.7%.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has BSL Limited Been A Good Investment?

Most shareholders would probably be pleased with BSL Limited for providing a total return of 39% 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...

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. 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 can have a massive impact on performance, but it's just one element. We did our research and spotted 3 warning signs for BSL that investors should look into moving forward.

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.
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