Here's Why Symphony Limited's (NSE:SYMPHONY) CEO Might See A Pay Rise Soon

Key Insights

• Symphony's Annual General Meeting to take place on 6th of August
• Salary of ₹21.7m is part of CEO Amit Kumar's total remuneration
• The overall pay is 48% below the industry average
• Over the past three years, Symphony's EPS grew by 12% and over the past three years, the total shareholder return was 32%

Shareholders will be pleased by the robust performance of Symphony Limited (NSE:SYMPHONY) recently and this will be kept in mind in the upcoming AGM on 6th of August. They will probably be more interested in hearing the board discuss future initiatives to further improve the business as they vote on resolutions such as executive remuneration. In our analysis below, we discuss why we think the CEO compensation looks acceptable and the case for a raise.

View our latest analysis for Symphony

How Does Total Compensation For Amit Kumar Compare With Other Companies In The Industry?

Our data indicates that Symphony Limited has a market capitalization of ₹84b, and total annual CEO compensation was reported as ₹29m for the year to March 2024. Notably, that's an increase of 29% over the year before. We note that the salary portion, which stands at ₹21.7m constitutes the majority of total compensation received by the CEO.

On examining similar-sized companies in the Indian Consumer Durables industry with market capitalizations between ₹33b and ₹134b, we discovered that the median CEO total compensation of that group was ₹55m. That is to say, Amit Kumar is paid under the industry median.

Component	2024	2023	Proportion (2024)
Salary	₹22m	₹20m	75%
Other	₹7.3m	₹2.0m	25%
Total Compensation	₹29m	₹22m	100%

Talking in terms of the industry, salary represented approximately 94% of total compensation out of all the companies we analyzed, while other remuneration made up 6% of the pie. It's interesting to note that Symphony allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Symphony Limited's Growth

Over the past three years, Symphony Limited has seen its earnings per share (EPS) grow by 12% per year. Its revenue is down 2.7% over the previous year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's always a tough situation when revenues are not growing, but ultimately profits are more important. 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 Symphony Limited Been A Good Investment?

With a total shareholder return of 32% over three years, Symphony Limited shareholders would, in general, be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

Overall, the company hasn't done too poorly performance-wise, but we would like to see some improvement. If it continues on the same road, shareholders might feel even more confident about their investment, and have little to no objections concerning CEO pay. 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.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 1 warning sign for Symphony that you should be aware of before investing.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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