Increases to Siyaram Silk Mills Limited's (NSE:SIYSIL) CEO Compensation Might Cool off for now

Key Insights

• Siyaram Silk Mills' Annual General Meeting to take place on 27th of July
• Salary of ₹34.3m is part of CEO Rameshkumar Poddar's total remuneration
• Total compensation is 175% above industry average
• Over the past three years, Siyaram Silk Mills' EPS grew by 276% and over the past three years, the total shareholder return was 29%

Under the guidance of CEO Rameshkumar Poddar, Siyaram Silk Mills Limited (NSE:SIYSIL) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 27th of July. However, some shareholders will still be cautious of paying the CEO excessively.

See our latest analysis for Siyaram Silk Mills

How Does Total Compensation For Rameshkumar Poddar Compare With Other Companies In The Industry?

At the time of writing, our data shows that Siyaram Silk Mills Limited has a market capitalization of ₹22b, and reported total annual CEO compensation of ₹64m for the year to March 2024. We note that's a decrease of 30% compared to last year. We note that the salary of ₹34.3m makes up a sizeable portion of the total compensation received by the CEO.

In comparison with other companies in the Indian Luxury industry with market capitalizations ranging from ₹8.4b to ₹33b, the reported median CEO total compensation was ₹23m. Accordingly, our analysis reveals that Siyaram Silk Mills Limited pays Rameshkumar Poddar north of the industry median. What's more, Rameshkumar Poddar holds ₹2.1b 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	₹34m	₹28m	53%
Other	₹30m	₹64m	47%
Total Compensation	₹64m	₹92m	100%

Speaking on an industry level, nearly 99% of total compensation represents salary, while the remainder of 0.75879388% is other remuneration. Siyaram Silk Mills pays a modest slice of remuneration through salary, as compared to the broader industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Siyaram Silk Mills Limited's Growth Numbers

Siyaram Silk Mills Limited has seen its earnings per share (EPS) increase by 276% a year over the past three years. It saw its revenue drop 6.3% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Siyaram Silk Mills Limited Been A Good Investment?

With a total shareholder return of 29% over three years, Siyaram Silk Mills Limited shareholders would, in general, be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this 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.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 1 warning sign for Siyaram Silk Mills that you should be aware of before investing.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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