Shareholders Would Not Be Objecting To JSW Holdings Limited's (NSE:JSWHL) CEO Compensation And Here's Why

Key Insights

• JSW Holdings will host its Annual General Meeting on 24th of July
• CEO Manoj Mohta's total compensation includes salary of ₹19.1m
• The total compensation is similar to the average for the industry
• JSW Holdings' total shareholder return over the past three years was 49% while its EPS grew by 27% over the past three years

It would be hard to discount the role that CEO Manoj Mohta has played in delivering the impressive results at JSW Holdings Limited (NSE:JSWHL) recently. Coming up to the next AGM on 24th of July, shareholders would be keeping this in mind. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.

Check out our latest analysis for JSW Holdings

How Does Total Compensation For Manoj Mohta Compare With Other Companies In The Industry?

According to our data, JSW Holdings Limited has a market capitalization of ₹78b, and paid its CEO total annual compensation worth ₹19m over the year to March 2024. That's a notable increase of 17% on last year. Notably, the salary of ₹19m is the entirety of the CEO compensation.

In comparison with other companies in the Indian Capital Markets industry with market capitalizations ranging from ₹33b to ₹134b, the reported median CEO total compensation was ₹19m. So it looks like JSW Holdings compensates Manoj Mohta in line with the median for the industry.

Speaking on an industry level, all of total compensation represents salary, while non-salary remuneration is completely ignored. Speaking on a company level, JSW Holdings prefers to tread along a traditional path, disbursing all compensation through a salary. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

JSW Holdings Limited's Growth

Over the past three years, JSW Holdings Limited has seen its earnings per share (EPS) grow by 27% per year. In the last year, its revenue is down 58%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has JSW Holdings Limited Been A Good Investment?

We think that the total shareholder return of 49%, over three years, would leave most JSW Holdings 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.

In Summary...

JSW Holdings rewards its CEO solely through a salary, ignoring non-salary benefits completely. Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling JSW Holdings (free visualization of insider trades).

Switching gears from JSW Holdings, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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