It's Unlikely That La Opala RG Limited's (NSE:LAOPALA) CEO Will See A Huge Pay Rise This Year

Key Insights

• La Opala RG's Annual General Meeting to take place on 29th of September
• Salary of ₹34.5m is part of CEO Ajit Jhunjhunwala's total remuneration
• The total compensation is 132% higher than the average for the industry
• La Opala RG's total shareholder return over the past three years was 113% while its EPS grew by 29% over the past three years

CEO Ajit Jhunjhunwala has done a decent job of delivering relatively good performance at La Opala RG Limited (NSE:LAOPALA) recently. As shareholders go into the upcoming AGM on 29th 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.

Check out our latest analysis for La Opala RG

How Does Total Compensation For Ajit Jhunjhunwala Compare With Other Companies In The Industry?

According to our data, La Opala RG Limited has a market capitalization of ₹47b, and paid its CEO total annual compensation worth ₹52m over the year to March 2023. We note that's an increase of 32% above last year. Notably, the salary which is ₹34.5m, represents most of the total compensation being paid.

For comparison, other companies in the Indian Consumer Durables industry with market capitalizations ranging between ₹17b and ₹66b had a median total CEO compensation of ₹22m. Accordingly, our analysis reveals that La Opala RG Limited pays Ajit Jhunjhunwala north of the industry median. Moreover, Ajit Jhunjhunwala also holds ₹4.2b worth of La Opala RG 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	₹34m	₹23m	66%
Other	₹18m	₹16m	34%
Total Compensation	₹52m	₹39m	100%

Talking in terms of the industry, salary represented approximately 100% of total compensation out of all the companies we analyzed, while other remuneration made up 0.2356% of the pie. It's interesting to note that La Opala RG allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at La Opala RG Limited's Growth Numbers

Over the past three years, La Opala RG Limited has seen its earnings per share (EPS) grow by 29% per year. Its revenue is up 22% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. 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 La Opala RG Limited Been A Good Investment?

Most shareholders would probably be pleased with La Opala RG Limited for providing a total return of 113% 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...

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. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at La Opala RG.

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.