It's Unlikely That Satin Creditcare Network Limited's (NSE:SATIN) CEO Will See A Huge Pay Rise This Year

Key Insights

• Satin Creditcare Network to hold its Annual General Meeting on 9th of August
• Total pay for CEO Harvinder Singh includes ₹12.0m salary
• The overall pay is 75% above the industry average
• Over the past three years, Satin Creditcare Network's EPS grew by 111% and over the past three years, the total shareholder return was 154%

CEO Harvinder Singh has done a decent job of delivering relatively good performance at Satin Creditcare Network Limited (NSE:SATIN) recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 9th of August. However, some shareholders may still want to keep CEO compensation within reason.

View our latest analysis for Satin Creditcare Network

Comparing Satin Creditcare Network Limited's CEO Compensation With The Industry

At the time of writing, our data shows that Satin Creditcare Network Limited has a market capitalization of ₹24b, and reported total annual CEO compensation of ₹16m for the year to March 2024. That is, the compensation was roughly the same as last year. We note that the salary portion, which stands at ₹12.0m constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the Indian Consumer Finance industry with market capitalizations ranging between ₹8.4b and ₹34b had a median total CEO compensation of ₹8.9m. This suggests that Harvinder Singh is paid more than the median for the industry.

Component	2024	2023	Proportion (2024)
Salary	₹12m	₹12m	78%
Other	₹3.5m	₹3.5m	22%
Total Compensation	₹16m	₹15m	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. Satin Creditcare Network pays a modest slice of remuneration through salary, as compared to the broader industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Satin Creditcare Network Limited's Growth

Satin Creditcare Network Limited's earnings per share (EPS) grew 111% per year over the last three years. Its revenue is up 32% 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 Satin Creditcare Network Limited Been A Good Investment?

We think that the total shareholder return of 154%, over three years, would leave most Satin Creditcare Network Limited shareholders smiling. 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...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay 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.

CEO pay is simply one of the many factors that need to be considered while examining business performance. That's why we did our research, and identified 2 warning signs for Satin Creditcare Network (of which 1 makes us a bit uncomfortable!) that you should know about in order to have a holistic understanding of the stock.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com