Increases to Weizmann Limited's (NSE:WEIZMANIND) CEO Compensation Might Cool off for now

Key Insights

• Weizmann to hold its Annual General Meeting on 30th of July
• Salary of ₹5.00m is part of CEO Neelkamal Siraj's total remuneration
• Total compensation is 387% above industry average
• Over the past three years, Weizmann's EPS grew by 23% and over the past three years, the total shareholder return was 130%

Under the guidance of CEO Neelkamal Siraj, Weizmann Limited (NSE:WEIZMANIND) has performed reasonably well recently. As shareholders go into the upcoming AGM on 30th of July, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still want to keep CEO compensation within reason.

View our latest analysis for Weizmann

Comparing Weizmann Limited's CEO Compensation With The Industry

According to our data, Weizmann Limited has a market capitalization of ₹1.9b, and paid its CEO total annual compensation worth ₹18m over the year to March 2024. We note that's a small decrease of 5.6% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at ₹5.0m.

In comparison with other companies in the Indian Luxury industry with market capitalizations under ₹17b, the reported median total CEO compensation was ₹3.7m. Hence, we can conclude that Neelkamal Siraj is remunerated higher than the industry median.

Component	2024	2023	Proportion (2024)
Salary	₹5.0m	₹5.0m	27%
Other	₹13m	₹14m	73%
Total Compensation	₹18m	₹19m	100%

On an industry level, around 99% of total compensation represents salary and 0.75879388% is other remuneration. In Weizmann's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at Weizmann Limited's Growth Numbers

Weizmann Limited has seen its earnings per share (EPS) increase by 23% a year over the past three years. Its revenue is down 9.1% over the previous year.

This demonstrates that the company has been improving recently and is good news for the shareholders. While it would be good to see revenue growth, profits matter more in the end. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Weizmann Limited Been A Good Investment?

We think that the total shareholder return of 130%, over three years, would leave most Weizmann 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.

To Conclude...

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.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We did our research and identified 2 warning signs (and 1 which is concerning) in Weizmann we think you should know about.

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