Shareholders May Be More Conservative With Orbit Exports Limited's (NSE:ORBTEXP) CEO Compensation For Now

Key Insights

• Orbit Exports will host its Annual General Meeting on 26th of September
• CEO Pankaj Seth's total compensation includes salary of ₹16.0m
• The total compensation is 593% higher than the average for the industry
• Orbit Exports' EPS grew by 72% over the past three years while total shareholder return over the past three years was 155%

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 26th of September. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

View our latest analysis for Orbit Exports

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

According to our data, Orbit Exports Limited has a market capitalization of ₹4.8b, and paid its CEO total annual compensation worth ₹25m over the year to March 2024. That's a notable increase of 11% on last year. Notably, the salary which is ₹16.0m, represents most of the total compensation being paid.

In comparison with other companies in the Indian Luxury industry with market capitalizations under ₹17b, the reported median total CEO compensation was ₹3.6m. Hence, we can conclude that Pankaj Seth is remunerated higher than the industry median. What's more, Pankaj Seth holds ₹2.0b worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2024	2023	Proportion (2024)
Salary	₹16m	₹15m	64%
Other	₹9.0m	₹7.9m	36%
Total Compensation	₹25m	₹23m	100%

Talking in terms of the industry, salary represented approximately 99% of total compensation out of all the companies we analyzed, while other remuneration made up 1% of the pie. In Orbit Exports' case, non-salary compensation represents a greater slice of total remuneration, 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

Over the past three years, Orbit Exports Limited has seen its earnings per share (EPS) grow by 72% per year. In the last year, its revenue is down 4.4%.

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 Orbit Exports Limited Been A Good Investment?

Boasting a total shareholder return of 155% over three years, Orbit Exports Limited has done well by shareholders. 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. 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.

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. That's why we did some digging and identified 1 warning sign for Orbit Exports that you should be aware of before investing.

Important note: Orbit Exports 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.