It Looks Like The CEO Of Kewal Kiran Clothing Limited (NSE:KKCL) May Be Underpaid Compared To Peers

Key Insights

• Kewal Kiran Clothing's Annual General Meeting to take place on 28th of September
• Total pay for CEO Kewalchand Jain includes ₹11.8m salary
• The overall pay is 54% below the industry average
• Over the past three years, Kewal Kiran Clothing's EPS grew by 38% and over the past three years, the total shareholder return was 399%

The impressive results at Kewal Kiran Clothing Limited (NSE:KKCL) recently will be great news for shareholders. This would be kept in mind at the upcoming AGM on 28th of September which will be a chance for them to hear the board review the financial results, discuss future company strategy and vote on resolutions such as executive remuneration and other matters. Here we will show why we think CEO compensation is appropriate and discuss the case for a pay rise.

See our latest analysis for Kewal Kiran Clothing

Comparing Kewal Kiran Clothing Limited's CEO Compensation With The Industry

Our data indicates that Kewal Kiran Clothing Limited has a market capitalization of ₹42b, and total annual CEO compensation was reported as ₹12m for the year to March 2023. Notably, that's an increase of 18% over the year before. Notably, the salary which is ₹11.8m, represents most of the total compensation being paid.

For comparison, other companies in the Indian Luxury industry with market capitalizations ranging between ₹17b and ₹66b had a median total CEO compensation of ₹27m. That is to say, Kewalchand Jain is paid under the industry median. Moreover, Kewalchand Jain also holds ₹2.4b worth of Kewal Kiran Clothing 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	₹12m	₹10m	94%
Other	₹708k	₹600k	6%
Total Compensation	₹12m	₹11m	100%

On an industry level, it's fascinating to see that all of total compensation represents salary and non-salary benefits do not factor into the equation at all. There isn't a significant difference between Kewal Kiran Clothing and the broader market, in terms of salary allocation in the overall compensation package. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

Kewal Kiran Clothing Limited's Growth

Kewal Kiran Clothing Limited has seen its earnings per share (EPS) increase by 38% a year over the past three years. Its revenue is up 20% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Kewal Kiran Clothing Limited Been A Good Investment?

Boasting a total shareholder return of 399% over three years, Kewal Kiran Clothing 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...

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.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We did our research and spotted 1 warning sign for Kewal Kiran Clothing that investors should look into moving forward.

Switching gears from Kewal Kiran Clothing, 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.