We Discuss Why Jindal Worldwide Limited's (NSE:JINDWORLD) CEO May Deserve A Higher Pay Packet

Key Insights

• Jindal Worldwide will host its Annual General Meeting on 16th of September
• CEO Amit Agrawal's total compensation includes salary of ₹18.0m
• The total compensation is 40% less than the average for the industry
• Jindal Worldwide's total shareholder return over the past three years was 347% while its EPS grew by 0.9% over the past three years

Shareholders will be pleased by the robust performance of Jindal Worldwide Limited (NSE:JINDWORLD) recently and this will be kept in mind in the upcoming AGM on 16th of September. The focus will probably be on the future strategic initiatives that the board and management will put in place to improve the business rather than executive remuneration when they cast their votes on company resolutions. In our analysis below, we discuss why we think the CEO compensation looks acceptable and the case for a raise.

See our latest analysis for Jindal Worldwide

How Does Total Compensation For Amit Agrawal Compare With Other Companies In The Industry?

At the time of writing, our data shows that Jindal Worldwide Limited has a market capitalization of ₹73b, and reported total annual CEO compensation of ₹18m for the year to March 2024. This was the same as last year. It is worth noting that the CEO compensation consists entirely of the salary, worth ₹18m.

On comparing similar companies from the Indian Luxury industry with market caps ranging from ₹34b to ₹134b, we found that the median CEO total compensation was ₹30m. In other words, Jindal Worldwide pays its CEO lower than the industry median. Furthermore, Amit Agrawal directly owns ₹14b worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	₹18m	₹18m	100%
Other	-	-	-
Total Compensation	₹18m	₹18m	100%

Talking in terms of the industry, salary represented approximately 98% of total compensation out of all the companies we analyzed, while other remuneration made up 2% of the pie. On a company level, Jindal Worldwide prefers to reward its CEO through a salary, opting not to pay Amit Agrawal through non-salary benefits. 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 Jindal Worldwide Limited's Growth Numbers

Earnings per share at Jindal Worldwide Limited are much the same as they were three years ago, albeit with slightly higher. It achieved revenue growth of 3.0% over the last year.

We'd prefer higher revenue growth, but it is good to see modest EPS growth. Considering these factors we'd say performance has been pretty decent, though not amazing. 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 Jindal Worldwide Limited Been A Good Investment?

Most shareholders would probably be pleased with Jindal Worldwide Limited for providing a total return of 347% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Jindal Worldwide rewards its CEO solely through a salary, ignoring non-salary benefits completely. Overall, the company hasn't done too poorly performance-wise, but we would like to see some improvement. If it continues on the same road, shareholders might feel even more confident about their investment, and have little to no objections concerning CEO pay. Rather, investors would more likely want to engage on discussions related to key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 1 warning sign for Jindal Worldwide that investors should look into moving forward.

Switching gears from Jindal Worldwide, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.