We Discuss Why The CEO Of Muthoot Finance Limited (NSE:MUTHOOTFIN) Is Due For A Pay Rise

Key Insights

• Muthoot Finance to hold its Annual General Meeting on 30th of August
• Salary of ₹270.3m is part of CEO George Muthoot's total remuneration
• Total compensation is 84% below industry average
• Muthoot Finance's EPS grew by 17% over the past three years while total shareholder return over the past three years was 168%

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The impressive results at Muthoot Finance Limited (NSE:MUTHOOTFIN) recently will be great news for shareholders. At the upcoming AGM on 30th of August, they will get a chance to hear the board review the company results, discuss future strategy and cast their vote on any resolutions such as executive remuneration. Here we will show why we think CEO compensation is appropriate and discuss the case for a pay rise.

View our latest analysis for Muthoot Finance

How Does Total Compensation For George Muthoot Compare With Other Companies In The Industry?

At the time of writing, our data shows that Muthoot Finance Limited has a market capitalization of ₹1.1t, and reported total annual CEO compensation of ₹270m for the year to March 2025. We note that's an increase of 10% above last year. Notably, the salary of ₹270m is the entirety of the CEO compensation.

In comparison with other companies in the Indian Consumer Finance industry with market capitalizations over ₹698b, the reported median total CEO compensation was ₹1.6b. This suggests that George Muthoot is paid below the industry median. Furthermore, George Muthoot directly owns ₹63b worth of shares in the company, implying that they are deeply invested in the company's success.

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. On a company level, Muthoot Finance prefers to reward its CEO through a salary, opting not to pay George Muthoot through non-salary benefits. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Muthoot Finance Limited's Growth Numbers

Muthoot Finance Limited's earnings per share (EPS) grew 17% per year over the last three years. Its revenue is up 38% 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. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Muthoot Finance Limited Been A Good Investment?

Boasting a total shareholder return of 168% over three years, Muthoot Finance Limited has done well by shareholders. 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.

To Conclude...

Muthoot Finance rewards its CEO solely through a salary, ignoring non-salary benefits completely. Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and 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. That's why we did our research, and identified 2 warning signs for Muthoot Finance (of which 1 is significant!) that you should know about in order to have a holistic understanding of the stock.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.