Himatsingka Seide Limited's (NSE:HIMATSEIDE) CEO Compensation Is Looking A Bit Stretched At The Moment
Key Insights
- Himatsingka Seide will host its Annual General Meeting on 26th of September
- Salary of ₹33.1m is part of CEO SKH Himatsingka's total remuneration
- The overall pay is 193% above the industry average
- Himatsingka Seide's total shareholder return over the past three years was 37% while its EPS grew by 22% over the past three years
Performance at Himatsingka Seide Limited (NSE:HIMATSEIDE) has been reasonably good and CEO SKH Himatsingka has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 26th 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 will still be cautious of paying the CEO excessively.
View our latest analysis for Himatsingka Seide
How Does Total Compensation For SKH Himatsingka Compare With Other Companies In The Industry?
Our data indicates that Himatsingka Seide Limited has a market capitalization of ₹17b, and total annual CEO compensation was reported as ₹43m for the year to March 2025. Notably, that's an increase of 9.7% over the year before. Notably, the salary which is ₹33.1m, represents most of the total compensation being paid.
For comparison, other companies in the Indian Luxury industry with market capitalizations ranging between ₹8.8b and ₹35b had a median total CEO compensation of ₹15m. Accordingly, our analysis reveals that Himatsingka Seide Limited pays SKH Himatsingka north of the industry median. Moreover, SKH Himatsingka also holds ₹1.1b worth of Himatsingka Seide stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Component | 2025 | 2024 | Proportion (2025) |
Salary | ₹33m | ₹29m | 77% |
Other | ₹10m | ₹10m | 23% |
Total Compensation | ₹43m | ₹39m | 100% |
On an industry level, around 99% of total compensation represents salary and 1% is other remuneration. In Himatsingka Seide's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. 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 Himatsingka Seide Limited's Growth Numbers
Himatsingka Seide Limited has seen its earnings per share (EPS) increase by 22% a year over the past three years. It saw its revenue drop 6.7% over the last year.
This demonstrates that the company has been improving recently and is good news for the shareholders. It's always a tough situation when revenues are not growing, but ultimately profits are more important. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has Himatsingka Seide Limited Been A Good Investment?
Most shareholders would probably be pleased with Himatsingka Seide Limited for providing a total return of 37% 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...
The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed 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 compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We did our research and identified 4 warning signs (and 1 which is significant) in Himatsingka Seide we think you should know about.
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.
Valuation is complex, but we're here to simplify it.
Discover if Himatsingka Seide might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
Access Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.