It's Unlikely That Steel City Securities Limited's (NSE:STEELCITY) CEO Will See A Huge Pay Rise This Year

Key Insights

• Steel City Securities' Annual General Meeting to take place on 28th of September
• Salary of ₹4.20m is part of CEO Satish Arya's total remuneration
• The total compensation is 215% higher than the average for the industry
• Steel City Securities' EPS grew by 8.2% over the past three years while total shareholder return over the past three years was 99%

Under the guidance of CEO Satish Arya, Steel City Securities Limited (NSE:STEELCITY) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 28th of September. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

View our latest analysis for Steel City Securities

How Does Total Compensation For Satish Arya Compare With Other Companies In The Industry?

At the time of writing, our data shows that Steel City Securities Limited has a market capitalization of ₹1.5b, and reported total annual CEO compensation of ₹4.2m for the year to March 2024. That's a notable increase of 17% on last year. It is worth noting that the CEO compensation consists entirely of the salary, worth ₹4.2m.

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 Steel City Securities Limited pays Satish Arya north of the industry median. Moreover, Satish Arya also holds ₹284m worth of Steel City Securities stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2024	2023	Proportion (2024)
Salary	₹4.2m	₹3.6m	100%
Other	-	-	-
Total Compensation	₹4.2m	₹3.6m	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. At the company level, Steel City Securities pays Satish Arya solely through a salary, preferring to go down a conventional route. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Steel City Securities Limited's Growth Numbers

Steel City Securities Limited's earnings per share (EPS) grew 8.2% per year over the last three years. In the last year, its revenue is up 13%.

We think the revenue growth is good. And, while modest, the EPS growth is noticeable. So while we'd stop just short of calling this a top performer, but we think it is well worth watching. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Steel City Securities Limited Been A Good Investment?

Boasting a total shareholder return of 99% over three years, Steel City Securities 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.

In Summary...

Steel City Securities pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 2 warning signs for Steel City Securities that investors should look into moving forward.

Important note: Steel City Securities is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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.