Shareholders May Be More Conservative With HDFC Asset Management Company Limited's (NSE:HDFCAMC) CEO Compensation For Now

Key Insights

• HDFC Asset Management to hold its Annual General Meeting on 25th of June
• CEO Navneet Munot's total compensation includes salary of ₹50.4m
• The total compensation is 225% higher than the average for the industry
• Over the past three years, HDFC Asset Management's EPS grew by 21% and over the past three years, the total shareholder return was 187%

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Under the guidance of CEO Navneet Munot, HDFC Asset Management Company Limited (NSE:HDFCAMC) has performed reasonably well recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 25th of June. However, some shareholders may still want to keep CEO compensation within reason.

See our latest analysis for HDFC Asset Management

Comparing HDFC Asset Management Company Limited's CEO Compensation With The Industry

According to our data, HDFC Asset Management Company Limited has a market capitalization of ₹1.1t, and paid its CEO total annual compensation worth ₹89m over the year to March 2025. That's a fairly small increase of 5.4% over the previous year. In particular, the salary of ₹50.4m, makes up a fairly large portion of the total compensation being paid to the CEO.

In comparison with other companies in the Indian Capital Markets industry with market capitalizations over ₹692b, the reported median total CEO compensation was ₹28m. This suggests that Navneet Munot is paid more than the median for the industry. Furthermore, Navneet Munot directly owns ₹108m worth of shares in the company, implying that they are deeply invested in the company's success.

Speaking on an industry level, all of total compensation represents salary, while non-salary remuneration is completely ignored. It's interesting to note that HDFC Asset Management 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.

HDFC Asset Management Company Limited's Growth

HDFC Asset Management Company Limited's earnings per share (EPS) grew 21% per year over the last three years. Its revenue is up 28% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has HDFC Asset Management Company Limited Been A Good Investment?

Most shareholders would probably be pleased with HDFC Asset Management Company Limited for providing a total return of 187% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

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. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 2 warning signs (and 1 which is significant) in HDFC Asset Management we think you should know about.

Important note: HDFC Asset Management 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.