This Is Why MAS Financial Services Limited's (NSE:MASFIN) CEO Can Expect A Bump Up In Their Pay Packet

Key Insights

• MAS Financial Services' Annual General Meeting to take place on 11th of September
• CEO Darshana Pandya's total compensation includes salary of ₹8.75m
• The overall pay is 86% below the industry average
• Over the past three years, MAS Financial Services' EPS grew by 19% and over the past three years, the total shareholder return was 14%

Shareholders will be pleased by the robust performance of MAS Financial Services Limited (NSE:MASFIN) recently and this will be kept in mind in the upcoming AGM on 11th of September. The focus will probably be on the future strategic initiatives that the board and management will put in place to improve the business rather than executive remuneration when they cast their votes on company resolutions. In our analysis below, we discuss why we think the CEO compensation looks acceptable and the case for a raise.

Check out our latest analysis for MAS Financial Services

Comparing MAS Financial Services Limited's CEO Compensation With The Industry

At the time of writing, our data shows that MAS Financial Services Limited has a market capitalization of ₹52b, and reported total annual CEO compensation of ₹8.7m for the year to March 2024. That's a notable increase of 31% on last year. It is worth noting that the CEO compensation consists entirely of the salary, worth ₹8.7m.

On comparing similar companies from the Indian Consumer Finance industry with market caps ranging from ₹34b to ₹134b, we found that the median CEO total compensation was ₹61m. In other words, MAS Financial Services pays its CEO lower than the industry median. What's more, Darshana Pandya holds ₹29m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2024	2023	Proportion (2024)
Salary	₹8.7m	₹6.7m	100%
Other	-	-	-
Total Compensation	₹8.7m	₹6.7m	100%

On an industry level, it's fascinating to see that all of total compensation represents salary and non-salary benefits do not factor into the equation at all. Speaking on a company level, MAS Financial Services prefers to tread along a traditional path, disbursing all compensation through a salary. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

MAS Financial Services Limited's Growth

MAS Financial Services Limited has seen its earnings per share (EPS) increase by 19% a year over the past three years. In the last year, its revenue is up 27%.

Shareholders would be glad to know that the company has improved itself over the last few years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has MAS Financial Services Limited Been A Good Investment?

MAS Financial Services Limited has generated a total shareholder return of 14% over three years, so most shareholders would be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary...

MAS Financial Services rewards its CEO solely through a salary, ignoring non-salary benefits completely. Overall, the company hasn't done too poorly performance-wise, but we would like to see some improvement. If it continues on the same road, shareholders might feel even more confident about their investment, and have little to no objections concerning CEO pay. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We identified 3 warning signs for MAS Financial Services (1 makes us a bit uncomfortable!) that you should be aware of before investing here.

Switching gears from MAS Financial Services, 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.