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

Key Insights

• Kewal Kiran Clothing will host its Annual General Meeting on 27th of September
• Total pay for CEO Kewalchand Jain includes ₹11.8m salary
• The overall pay is 48% below the industry average
• Over the past three years, Kewal Kiran Clothing's EPS grew by 58% and over the past three years, the total shareholder return was 296%

The solid performance at Kewal Kiran Clothing Limited (NSE:KKCL) has been impressive and shareholders will probably be pleased to know that CEO Kewalchand Jain has delivered. At the upcoming AGM on 27th of September, they would be interested to hear about the company strategy going forward and get a chance to cast their votes on resolutions such as executive remuneration and other company matters. We think the CEO has done a pretty decent job and probably deserves a well-earned pay rise.

Check out our latest analysis for Kewal Kiran Clothing

How Does Total Compensation For Kewalchand Jain Compare With Other Companies In The Industry?

Our data indicates that Kewal Kiran Clothing Limited has a market capitalization of ₹41b, and total annual CEO compensation was reported as ₹13m for the year to March 2024. This means that the compensation hasn't changed much from last year. In particular, the salary of ₹11.8m, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the Indian Luxury industry with market capitalizations ranging between ₹17b and ₹67b had a median total CEO compensation of ₹24m. This suggests that Kewalchand Jain is paid below the industry median. Moreover, Kewalchand Jain also holds ₹23b 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	2024	2023	Proportion (2024)
Salary	₹12m	₹12m	94%
Other	₹708k	₹708k	6%
Total Compensation	₹13m	₹12m	100%

On an industry level, around 98% of total compensation represents salary and 2% is other remuneration. 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 total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Kewal Kiran Clothing Limited's Growth Numbers

Over the past three years, Kewal Kiran Clothing Limited has seen its earnings per share (EPS) grow by 58% per year. In the last year, its revenue is up 3.7%.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Kewal Kiran Clothing Limited Been A Good Investment?

Boasting a total shareholder return of 296% 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.

In Summary...

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.

Shareholders may want to check for free if Kewal Kiran Clothing insiders are buying or selling shares.

Important note: Kewal Kiran Clothing is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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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.