Increases to SIL Investments Limited's (NSE:SILINV) CEO Compensation Might Cool off for now

Key Insights

• SIL Investments will host its Annual General Meeting on 30th of July
• Total pay for CEO Shalini Nopany includes ₹8.30m salary
• The total compensation is 620% higher than the average for the industry
• SIL Investments' EPS grew by 13% over the past three years while total shareholder return over the past three years was 80%

Performance at SIL Investments Limited (NSE:SILINV) has been reasonably good and CEO Shalini Nopany has done a decent job of steering the company in the right direction. 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 30th of July. However, some shareholders will still be cautious of paying the CEO excessively.

Check out our latest analysis for SIL Investments

How Does Total Compensation For Shalini Nopany Compare With Other Companies In The Industry?

At the time of writing, our data shows that SIL Investments Limited has a market capitalization of ₹5.9b, and reported total annual CEO compensation of ₹9.3m for the year to March 2024. That's a notable increase of 40% on last year. In particular, the salary of ₹8.30m, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the Indian Capital Markets industry with market capitalizations under ₹17b, the reported median total CEO compensation was ₹1.3m. Accordingly, our analysis reveals that SIL Investments Limited pays Shalini Nopany north of the industry median.

Component	2024	2023	Proportion (2024)
Salary	₹8.3m	₹6.6m	89%
Other	₹981k	₹29k	11%
Total Compensation	₹9.3m	₹6.6m	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. It's interesting to note that SIL Investments allocates a smaller portion of compensation to salary in comparison to the broader industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at SIL Investments Limited's Growth Numbers

SIL Investments Limited's earnings per share (EPS) grew 13% per year over the last three years. Its revenue is up 26% 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. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has SIL Investments Limited Been A Good Investment?

We think that the total shareholder return of 80%, over three years, would leave most SIL Investments 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.

To Conclude...

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 compensation can have a massive impact on performance, but it's just one element. We've identified 2 warning signs for SIL Investments that investors should be aware of in a dynamic business environment.

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.

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