Increases to Nahar Industrial Enterprises Limited's (NSE:NAHARINDUS) CEO Compensation Might Cool off for now

Key Insights

• Nahar Industrial Enterprises' Annual General Meeting to take place on 27th of September
• Salary of ₹45.8m is part of CEO Kamal Oswal's total remuneration
• The overall pay is 1,333% above the industry average
• Nahar Industrial Enterprises' EPS grew by 62% over the past three years while total shareholder return over the past three years was 464%

Under the guidance of CEO Kamal Oswal, Nahar Industrial Enterprises Limited (NSE:NAHARINDUS) has performed reasonably well recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 27th of September. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

Check out our latest analysis for Nahar Industrial Enterprises

Comparing Nahar Industrial Enterprises Limited's CEO Compensation With The Industry

At the time of writing, our data shows that Nahar Industrial Enterprises Limited has a market capitalization of ₹6.0b, and reported total annual CEO compensation of ₹56m for the year to March 2023. Notably, that's a decrease of 27% over the year before. We note that the salary portion, which stands at ₹45.8m constitutes the majority of total compensation received by the CEO.

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 Kamal Oswal is remunerated higher than the industry median.

Component	2023	2022	Proportion (2023)
Salary	₹46m	₹44m	82%
Other	₹10m	₹33m	18%
Total Compensation	₹56m	₹76m	100%

Speaking on an industry level, all of total compensation represents salary, while non-salary remuneration is completely ignored. Nahar Industrial Enterprises sets aside a smaller share of compensation for salary, in comparison to the overall industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Nahar Industrial Enterprises Limited's Growth

Nahar Industrial Enterprises Limited has seen its earnings per share (EPS) increase by 62% a year over the past three years. Its revenue is down 16% over the previous year.

This demonstrates that the company has been improving recently and is good news for the shareholders. While it would be good to see revenue growth, profits matter more in the end. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Nahar Industrial Enterprises Limited Been A Good Investment?

Boasting a total shareholder return of 464% over three years, Nahar Industrial Enterprises Limited has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

To Conclude...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 3 warning signs for Nahar Industrial Enterprises that you should be aware of before investing.

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.