Himatsingka Seide Limited's (NSE:HIMATSEIDE) CEO Might Not Expect Shareholders To Be So Generous This Year

Shareholders will probably not be too impressed with the underwhelming results at Himatsingka Seide Limited (NSE:HIMATSEIDE) recently. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 28 September 2022. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. The data we present below explains why we think CEO compensation is not consistent with recent performance.

Check out our latest analysis for Himatsingka Seide

How Does Total Compensation For SKH Himatsingka Compare With Other Companies In The Industry?

According to our data, Himatsingka Seide Limited has a market capitalization of ₹9.7b, and paid its CEO total annual compensation worth ₹23m over the year to March 2022. That's a notable increase of 65% on last year. Notably, the salary of ₹23m is the entirety of the CEO compensation.

In comparison with other companies in the industry with market capitalizations under ₹16b, the reported median total CEO compensation was ₹3.6m. Hence, we can conclude that SKH Himatsingka is remunerated higher than the industry median. Furthermore, SKH Himatsingka directly owns ₹835m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2022	2021	Proportion (2022)
Salary	₹23m	₹14m	100%
Other	-	-	-
Total Compensation	₹23m	₹14m	100%

Speaking on an industry level, nearly 100% of total compensation represents salary, while the remainder of 0.2268% is other remuneration. On a company level, Himatsingka Seide prefers to reward its CEO through a salary, opting not to pay SKH Himatsingka through non-salary benefits. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Himatsingka Seide Limited's Growth Numbers

Over the last three years, Himatsingka Seide Limited has shrunk its earnings per share by 48% per year. Its revenue is up 3.9% over the last year.

The decline in EPS is a bit concerning. And the modest revenue growth over 12 months isn't much comfort against the reduced EPS. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Himatsingka Seide Limited Been A Good Investment?

The return of -33% over three years would not have pleased Himatsingka Seide Limited shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

Himatsingka Seide pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. That's why we did our research, and identified 4 warning signs for Himatsingka Seide (of which 1 is concerning!) that you should know about in order to have a holistic understanding of the stock.

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.