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

Key Insights

• CRISIL will host its Annual General Meeting on 16th of April
• CEO Amish Mehta's total compensation includes salary of ₹37.8m
• The overall pay is 112% above the industry average
• CRISIL's total shareholder return over the past three years was 176% while its EPS grew by 23% over the past three years

Under the guidance of CEO Amish Mehta, CRISIL Limited (NSE:CRISIL) has performed reasonably well recently. As shareholders go into the upcoming AGM on 16th of April, 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 CRISIL

How Does Total Compensation For Amish Mehta Compare With Other Companies In The Industry?

Our data indicates that CRISIL Limited has a market capitalization of ₹358b, and total annual CEO compensation was reported as ₹101m for the year to December 2023. That's a fairly small increase of 4.1% over the previous year. We think total compensation is more important but our data shows that the CEO salary is lower, at ₹38m.

In comparison with other companies in the Indian Capital Markets industry with market capitalizations ranging from ₹166b to ₹533b, the reported median CEO total compensation was ₹48m. Hence, we can conclude that Amish Mehta is remunerated higher than the industry median. Furthermore, Amish Mehta directly owns ₹147m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2023	2022	Proportion (2023)
Salary	₹38m	₹33m	37%
Other	₹63m	₹63m	63%
Total Compensation	₹101m	₹97m	100%

Talking in terms of the industry, salary represents all of total compensation among the companies we analyzed, while other remuneration is, interestingly, completely ignored. In CRISIL's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

CRISIL Limited's Growth

CRISIL Limited has seen its earnings per share (EPS) increase by 23% a year over the past three years. It achieved revenue growth of 13% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has CRISIL Limited Been A Good Investment?

We think that the total shareholder return of 176%, over three years, would leave most CRISIL Limited shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed 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.

Whatever your view on compensation, you might want to check if insiders are buying or selling CRISIL shares (free trial).

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.