Shareholders Will Probably Hold Off On Increasing Indian Terrain Fashions Limited's (NSE:INDTERRAIN) CEO Compensation For The Time Being

Key Insights

• Indian Terrain Fashions will host its Annual General Meeting on 18th of September
• Salary of ₹7.20m is part of CEO Charath Narsimhan's total remuneration
• The total compensation is 85% higher than the average for the industry
• Indian Terrain Fashions' EPS grew by 111% over the past three years while total shareholder return over the past three years was 87%

Under the guidance of CEO Charath Narsimhan, Indian Terrain Fashions Limited (NSE:INDTERRAIN) has performed reasonably well recently. As shareholders go into the upcoming AGM on 18th 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 Indian Terrain Fashions

How Does Total Compensation For Charath Narsimhan Compare With Other Companies In The Industry?

At the time of writing, our data shows that Indian Terrain Fashions Limited has a market capitalization of ₹2.8b, and reported total annual CEO compensation of ₹7.2m for the year to March 2023. Notably, that's an increase of 50% over the year before. Notably, the salary of ₹7.2m is the entirety of the CEO compensation.

On comparing similar-sized companies in the Indian Luxury industry with market capitalizations below ₹17b, we found that the median total CEO compensation was ₹3.9m. Hence, we can conclude that Charath Narsimhan is remunerated higher than the industry median. Furthermore, Charath Narsimhan directly owns ₹47m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2023	2022	Proportion (2023)
Salary	₹7.2m	₹4.8m	100%
Other	-	-	-
Total Compensation	₹7.2m	₹4.8m	100%

Speaking on an industry level, all of total compensation represents salary, while non-salary remuneration is completely ignored. Speaking on a company level, Indian Terrain Fashions 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.

Indian Terrain Fashions Limited's Growth

Indian Terrain Fashions Limited has seen its earnings per share (EPS) increase by 111% a year over the past three years. Its revenue is up 21% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Indian Terrain Fashions Limited Been A Good Investment?

We think that the total shareholder return of 87%, over three years, would leave most Indian Terrain Fashions Limited shareholders smiling. 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.

To Conclude...

Indian Terrain Fashions rewards its CEO solely through a salary, ignoring non-salary benefits completely. 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. 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 is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. In our study, we found 4 warning signs for Indian Terrain Fashions you should be aware of, and 1 of them is a bit concerning.

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.