We Take A Look At Whether BCL Industries Limited's (NSE:BCLIND) CEO May Be Underpaid

Key Insights

• BCL Industries to hold its Annual General Meeting on 19th of September
• Salary of ₹6.00m is part of CEO Rajinder Mittal's total remuneration
• The total compensation is 58% less than the average for the industry
• BCL Industries' total shareholder return over the past three years was 162% while its EPS grew by 13% over the past three years

Shareholders will be pleased by the impressive results for BCL Industries Limited (NSE:BCLIND) recently and CEO Rajinder Mittal has played a key role. At the upcoming AGM on 19th of September, they would be interested to hear about the company strategy going forward and get a chance to cast their votes on resolutions such as executive remuneration and other company matters. We think the CEO has done a pretty decent job and probably deserves a well-earned pay rise.

Check out our latest analysis for BCL Industries

How Does Total Compensation For Rajinder Mittal Compare With Other Companies In The Industry?

According to our data, BCL Industries Limited has a market capitalization of ₹18b, and paid its CEO total annual compensation worth ₹6.0m over the year to March 2024. There was no change in the compensation compared to last year. It is worth noting that the CEO compensation consists entirely of the salary, worth ₹6.0m.

On examining similar-sized companies in the Indian Food industry with market capitalizations between ₹8.4b and ₹34b, we discovered that the median CEO total compensation of that group was ₹14m. That is to say, Rajinder Mittal is paid under the industry median. Furthermore, Rajinder Mittal directly owns ₹3.7b worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	₹6.0m	₹6.0m	100%
Other	-	-	-
Total Compensation	₹6.0m	₹6.0m	100%

Speaking on an industry level, all of total compensation represents salary, while non-salary remuneration is completely ignored. At the company level, BCL Industries pays Rajinder Mittal 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.

BCL Industries Limited's Growth

Over the past three years, BCL Industries Limited has seen its earnings per share (EPS) grow by 13% per year. In the last year, its revenue is up 25%.

This demonstrates that the company has been improving recently and is good news for the shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has BCL Industries Limited Been A Good Investment?

Most shareholders would probably be pleased with BCL Industries Limited for providing a total return of 162% over three years. 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...

BCL Industries rewards its CEO solely through a salary, ignoring non-salary benefits completely. The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed 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.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We identified 3 warning signs for BCL Industries (1 is concerning!) that you should be aware of before investing here.

Switching gears from BCL Industries, 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.