This Is The Reason Why We Think Swan Corp Limited's (NSE:SWANCORP) CEO Deserves A Bump Up To Their Compensation

Key Insights

• Swan will host its Annual General Meeting on 29th of September
• Salary of ₹13.8m is part of CEO Nikhil Merchant's total remuneration
• The overall pay is 64% below the industry average
• Swan's EPS grew by 85% over the past three years while total shareholder return over the past three years was 122%

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The impressive results at Swan Corp Limited (NSE:SWANCORP) recently will be great news for shareholders. At the upcoming AGM on 29th of September, 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. Here we will show why we think CEO compensation is appropriate and discuss the case for a pay rise.

View our latest analysis for Swan

Comparing Swan Corp Limited's CEO Compensation With The Industry

According to our data, Swan Corp Limited has a market capitalization of ₹153b, and paid its CEO total annual compensation worth ₹14m over the year to March 2025. This was the same amount the CEO received in the prior year. It is worth noting that the CEO compensation consists entirely of the salary, worth ₹14m.

For comparison, other companies in the Indian Luxury industry with market capitalizations ranging between ₹88b and ₹283b had a median total CEO compensation of ₹38m. In other words, Swan pays its CEO lower than the industry median. Moreover, Nikhil Merchant also holds ₹22m worth of Swan stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, around 99% of total compensation represents salary and 1% is other remuneration. At the company level, Swan pays Nikhil Merchant solely through a salary, preferring to go down a conventional route. 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 Swan Corp Limited's Growth Numbers

Over the past three years, Swan Corp Limited has seen its earnings per share (EPS) grow by 85% per year. Its revenue is down 6.4% over the previous year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. 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 Swan Corp Limited Been A Good Investment?

Most shareholders would probably be pleased with Swan Corp Limited for providing a total return of 122% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Swan rewards its CEO solely through a salary, ignoring non-salary benefits completely. Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

So you may want to check if insiders are buying Swan shares with their own money (free access).

Important note: Swan 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.