We Think Shareholders May Want To Consider A Review Of Sakuma Exports Limited's (NSE:SAKUMA) CEO Compensation Package

Key Insights

• Sakuma Exports to hold its Annual General Meeting on 29th of September
• Salary of ₹7.50m is part of CEO Saurabh Chander Malhotra's total remuneration
• The overall pay is 149% above the industry average
• Over the past three years, Sakuma Exports' EPS fell by 36% and over the past three years, the total loss to shareholders 12%

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Shareholders will probably not be too impressed with the underwhelming results at Sakuma Exports Limited (NSE:SAKUMA) recently. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 29th of September. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. From our analysis, we think CEO compensation may need a review in light of the recent performance.

View our latest analysis for Sakuma Exports

Comparing Sakuma Exports Limited's CEO Compensation With The Industry

At the time of writing, our data shows that Sakuma Exports Limited has a market capitalization of ₹4.0b, and reported total annual CEO compensation of ₹7.5m for the year to March 2025. We note that's a decrease of 31% compared to last year. Notably, the salary of ₹7.5m is the entirety of the CEO compensation.

For comparison, other companies in the India Consumer Retailing industry with market capitalizations below ₹18b, reported a median total CEO compensation of ₹3.0m. This suggests that Saurabh Chander Malhotra is paid more than the median for the industry. What's more, Saurabh Chander Malhotra holds ₹553m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Speaking on an industry level, all of total compensation represents salary, while non-salary remuneration is completely ignored. At the company level, Sakuma Exports pays Saurabh Chander Malhotra 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.

Sakuma Exports Limited's Growth

Sakuma Exports Limited has reduced its earnings per share by 36% a year over the last three years. It saw its revenue drop 19% over the last year.

The decline in EPS is a bit concerning. And the fact that revenue is down year on year arguably paints an ugly picture. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Sakuma Exports Limited Been A Good Investment?

Given the total shareholder loss of 12% over three years, many shareholders in Sakuma Exports Limited are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Sakuma Exports rewards its CEO solely through a salary, ignoring non-salary benefits completely. Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 2 warning signs for Sakuma Exports 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.