This Is Why Hatsun Agro Product Limited's (NSE:HATSUN) CEO Can Expect A Bump Up In Their Pay Packet

Key Insights

• Hatsun Agro Product's Annual General Meeting to take place on 28th of August
• CEO C. Sathyan's total compensation includes salary of ₹9.66m
• The total compensation is 78% less than the average for the industry
• Over the past three years, Hatsun Agro Product's EPS grew by 7.3% and over the past three years, the total shareholder return was 32%

The decent performance at Hatsun Agro Product Limited (NSE:HATSUN) recently will please most shareholders as they go into the AGM coming up on 28th of August. The focus will probably be on the future strategic initiatives that the board and management will put in place to improve the business rather than executive remuneration when they cast their votes on company resolutions. Here is our take on why we think CEO compensation is fair and may even warrant a raise.

Check out our latest analysis for Hatsun Agro Product

Comparing Hatsun Agro Product Limited's CEO Compensation With The Industry

At the time of writing, our data shows that Hatsun Agro Product Limited has a market capitalization of ₹287b, and reported total annual CEO compensation of ₹9.7m for the year to March 2024. That's mostly flat as compared to the prior year's compensation. In particular, the salary of ₹9.66m, makes up a huge portion of the total compensation being paid to the CEO.

On examining similar-sized companies in the Indian Food industry with market capitalizations between ₹168b and ₹537b, we discovered that the median CEO total compensation of that group was ₹45m. Accordingly, Hatsun Agro Product pays its CEO under the industry median. What's more, C. Sathyan holds ₹31b worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2024	2023	Proportion (2024)
Salary	₹9.7m	₹9.4m	99%
Other	₹61k	₹61k	1%
Total Compensation	₹9.7m	₹9.5m	100%

On an industry level, roughly 100% of total compensation represents salary and 0.09242144% is other remuneration. Hatsun Agro Product is focused on going down a more traditional approach and is paying a higher portion of compensation through salary, as compared to non-salary benefits. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Hatsun Agro Product Limited's Growth Numbers

Hatsun Agro Product Limited has seen its earnings per share (EPS) increase by 7.3% a year over the past three years. In the last year, its revenue is up 11%.

This revenue growth could really point to a brighter future. 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. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Hatsun Agro Product Limited Been A Good Investment?

Hatsun Agro Product Limited has served shareholders reasonably well, with a total return of 32% over three years. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary...

C. receives almost all of their compensation through a salary. The company's overall performance, while not bad, could be better. If it manages to keep up the current streak, CEO remuneration could well be one of shareholders' least concerns. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. That's why we did our research, and identified 3 warning signs for Hatsun Agro Product (of which 1 is a bit concerning!) 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.