Key Insights
- ITC will host its Annual General Meeting on 26th of July
- Salary of ₹31.2m is part of CEO Sanjiv Puri's total remuneration
- Total compensation is 42% below industry average
- Over the past three years, ITC's EPS grew by 15% and over the past three years, the total shareholder return was 151%
The impressive results at ITC Limited (NSE:ITC) recently will be great news for shareholders. This would be kept in mind at the upcoming AGM on 26th of July which will be a chance for them to hear the board review the financial results, discuss future company strategy and vote on resolutions such as executive remuneration and other matters. We think the CEO has done a pretty decent job and probably deserves a well-earned pay rise.
See our latest analysis for ITC
Comparing ITC Limited's CEO Compensation With The Industry
According to our data, ITC Limited has a market capitalization of ₹6.0t, and paid its CEO total annual compensation worth ₹252m over the year to March 2024. We note that's an increase of 54% above last year. While we always look at total compensation first, our analysis shows that the salary component is less, at ₹31m.
For comparison, other companies in the India Tobacco industry with market capitalizations above ₹669b, reported a median total CEO compensation of ₹432m. Accordingly, ITC pays its CEO under the industry median. What's more, Sanjiv Puri holds ₹287m 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 | ₹31m | ₹29m | 12% |
| Other | ₹221m | ₹134m | 88% |
| Total Compensation | ₹252m | ₹163m | 100% |
On an industry level, roughly 30% of total compensation represents salary and 70% is other remuneration. In ITC's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
A Look at ITC Limited's Growth Numbers
ITC Limited's earnings per share (EPS) grew 15% per year over the last three years. Revenue was pretty flat on last year.
Shareholders would be glad to know that the company has improved itself over the last few years. While it would be good to see revenue growth, profits matter more in the end. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has ITC Limited Been A Good Investment?
Boasting a total shareholder return of 151% over three years, ITC 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...
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. 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.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 1 warning sign for ITC that investors should be aware of in a dynamic business environment.
Switching gears from ITC, 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.
New: AI Stock Screener & Alerts
Our new AI Stock Screener scans the market every day to uncover opportunities.
• Dividend Powerhouses (3%+ Yield)
• Undervalued Small Caps with Insider Buying
• High growth Tech and AI Companies
Or build your own from over 50 metrics.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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
About NSEI:ITC
ITC
Engages in the fast-moving consumer goods, hotels, paperboards and paper and packaging, agri, and information technology businesses in India and internationally.
Excellent balance sheet established dividend payer.
