Safari Industries (India) Limited's (NSE:SAFARI) CEO Looks Due For A Compensation Raise

Key Insights

• Safari Industries (India)'s Annual General Meeting to take place on 7th of August
• Total pay for CEO Sudhir Jatia includes ₹12.2m salary
• The overall pay is 36% below the industry average
• Safari Industries (India)'s EPS grew by 84% over the past three years while total shareholder return over the past three years was 452%

The solid performance at Safari Industries (India) Limited (NSE:SAFARI) has been impressive and shareholders will probably be pleased to know that CEO Sudhir Jatia has delivered. At the upcoming AGM on 7th of August, they would be interested to hear about the company strategy going forward and get a chance to cast their votes on resolutions such as executive remuneration and other company matters. Let's take a look at why we think the CEO has done a good job and we'll present the case for a bump in pay.

Check out our latest analysis for Safari Industries (India)

How Does Total Compensation For Sudhir Jatia Compare With Other Companies In The Industry?

Our data indicates that Safari Industries (India) Limited has a market capitalization of ₹101b, and total annual CEO compensation was reported as ₹25m for the year to March 2024. Notably, that's an increase of 47% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at ₹12m.

On examining similar-sized companies in the Indian Luxury industry with market capitalizations between ₹84b and ₹268b, we discovered that the median CEO total compensation of that group was ₹40m. That is to say, Sudhir Jatia is paid under the industry median. Furthermore, Sudhir Jatia directly owns ₹37b worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	₹12m	₹11m	48%
Other	₹13m	₹6.2m	52%
Total Compensation	₹25m	₹17m	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 0.97228232% of the pie. In Safari Industries (India)'s case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Safari Industries (India) Limited's Growth

Over the past three years, Safari Industries (India) Limited has seen its earnings per share (EPS) grow by 84% per year. It achieved revenue growth of 28% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Safari Industries (India) Limited Been A Good Investment?

Boasting a total shareholder return of 452% over three years, Safari Industries (India) 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...

Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 2 warning signs for Safari Industries (India) that investors should think about before committing capital to this stock.

Switching gears from Safari Industries (India), 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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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