Why We Think Shareholders May Be Considering Bumping Up Himatsingka Seide Limited's (NSE:HIMATSEIDE) CEO Compensation

Key Insights

• Himatsingka Seide to hold its Annual General Meeting on 28th of September
• Total pay for CEO SKH Himatsingka includes ₹13.7m salary
• The total compensation is 45% less than the average for the industry
• Himatsingka Seide's total shareholder return over the past three years was 81% while its EPS grew by 37% over the past three years

The solid performance at Himatsingka Seide Limited (NSE:HIMATSEIDE) has been impressive and shareholders will probably be pleased to know that CEO SKH Himatsingka has delivered. At the upcoming AGM on 28th of September, they will get a chance to hear the board review the company results, discuss future strategy and cast their vote on any resolutions such as executive remuneration. Let's take a look at why we think the CEO has done a good job and we'll present the case for a bump in pay.

Check out 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 ₹14b, and total annual CEO compensation was reported as ₹14m for the year to March 2023. That's a notable decrease of 41% on last year. It is worth noting that the CEO compensation consists entirely of the salary, worth ₹14m.

On examining similar-sized companies in the Indian Luxury industry with market capitalizations between ₹8.3b and ₹33b, we discovered that the median CEO total compensation of that group was ₹25m. That is to say, SKH Himatsingka is paid under the industry median. Moreover, SKH Himatsingka also holds ₹1.2b 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	2023	2022	Proportion (2023)
Salary	₹14m	₹23m	100%
Other	-	-	-
Total Compensation	₹14m	₹23m	100%

Talking in terms of the industry, salary represents all of total compensation among the companies we analyzed, while other remuneration is, interestingly, completely ignored. 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.

Himatsingka Seide Limited's Growth

Himatsingka Seide Limited's earnings per share (EPS) grew 37% per year over the last three years. In the last year, its revenue is down 9.5%.

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?

Boasting a total shareholder return of 81% over three years, Himatsingka Seide Limited has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

Himatsingka Seide rewards its CEO solely through a salary, ignoring non-salary benefits completely. The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 1 warning sign for Himatsingka Seide 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.

Have 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.