Increases to CEO Compensation Might Be Put On Hold For Now at Orbit Exports Limited (NSE:ORBTEXP)

Key Insights

• Orbit Exports will host its Annual General Meeting on 22nd of September
• CEO Pankaj Seth's total compensation includes salary of ₹14.6m
• The overall pay is 476% above the industry average
• Orbit Exports' EPS grew by 39% over the past three years while total shareholder return over the past three years was 162%

Performance at Orbit Exports Limited (NSE:ORBTEXP) has been reasonably good and CEO Pankaj Seth has done a decent job of steering the company in the right direction. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 22nd of September. However, some shareholders will still be cautious of paying the CEO excessively.

Check out our latest analysis for Orbit Exports

How Does Total Compensation For Pankaj Seth Compare With Other Companies In The Industry?

Our data indicates that Orbit Exports Limited has a market capitalization of ₹4.4b, and total annual CEO compensation was reported as ₹23m for the year to March 2023. Notably, that's an increase of 13% over the year before. In particular, the salary of ₹14.6m, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the Indian Luxury industry with market capitalizations under ₹17b, the reported median total CEO compensation was ₹3.9m. Hence, we can conclude that Pankaj Seth is remunerated higher than the industry median. Moreover, Pankaj Seth also holds ₹1.8b worth of Orbit Exports 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	₹15m	₹13m	65%
Other	₹7.9m	₹6.7m	35%
Total Compensation	₹23m	₹20m	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. It's interesting to note that Orbit Exports allocates a smaller portion of compensation to salary in comparison to the broader industry. 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.

A Look at Orbit Exports Limited's Growth Numbers

Orbit Exports Limited's earnings per share (EPS) grew 39% per year over the last three years. In the last year, its revenue is up 28%.

This demonstrates that the company has been improving recently and is good news for the shareholders. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Orbit Exports Limited Been A Good Investment?

Most shareholders would probably be pleased with Orbit Exports Limited for providing a total return of 162% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

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. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 1 warning sign for Orbit Exports that investors should think about before committing capital to this stock.

Switching gears from Orbit Exports, 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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