Here's Why Shareholders May Want To Be Cautious With Increasing Raymond Limited's (NSE:RAYMOND) CEO Pay Packet

Key Insights

• Raymond's Annual General Meeting to take place on 27th of June
• Total pay for CEO Gautam Hari Singhania includes ₹80.4m salary
• The overall pay is 345% above the industry average
• Raymond's EPS grew by 97% over the past three years while total shareholder return over the past three years was 488%

Under the guidance of CEO Gautam Hari Singhania, Raymond Limited (NSE:RAYMOND) 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 June. However, some shareholders will still be cautious of paying the CEO excessively.

See our latest analysis for Raymond

How Does Total Compensation For Gautam Hari Singhania Compare With Other Companies In The Industry?

Our data indicates that Raymond Limited has a market capitalization of ₹160b, and total annual CEO compensation was reported as ₹199m for the year to March 2024. We note that's an increase of 22% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at ₹80m.

On comparing similar companies from the Indian Luxury industry with market caps ranging from ₹84b to ₹268b, we found that the median CEO total compensation was ₹45m. Hence, we can conclude that Gautam Hari Singhania is remunerated higher than the industry median. What's more, Gautam Hari Singhania holds ₹13m 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	₹80m	₹72m	40%
Other	₹119m	₹91m	60%
Total Compensation	₹199m	₹163m	100%

On an industry level, around 100% of total compensation represents salary and 0.28564009% is other remuneration. Raymond sets aside a smaller share of compensation for salary, in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at Raymond Limited's Growth Numbers

Raymond Limited has seen its earnings per share (EPS) increase by 97% a year over the past three years. It achieved revenue growth of 9.8% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. 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 Raymond Limited Been A Good Investment?

We think that the total shareholder return of 488%, over three years, would leave most Raymond Limited shareholders smiling. 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.

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. 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.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. That's why we did our research, and identified 5 warning signs for Raymond (of which 3 don't sit too well with us!) that you should know about in order to have a holistic understanding of the stock.

Important note: Raymond 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com