We Take A Look At Why Tilaknagar Industries Ltd.'s (NSE:TI) CEO Has Earned Their Pay Packet

Key Insights

• Tilaknagar Industries will host its Annual General Meeting on 27th of September
• Salary of ₹35.4m is part of CEO Amit Dahanukar's total remuneration
• The overall pay is comparable to the industry average
• Tilaknagar Industries' total shareholder return over the past three years was 692% while its EPS grew by 66% over the past three years

We have been pretty impressed with the performance at Tilaknagar Industries Ltd. (NSE:TI) recently and CEO Amit Dahanukar deserves a mention for their role in it. Coming up to the next AGM on 27th of September, shareholders would be keeping this in mind. The focus will probably be on the future company strategy as shareholders cast their votes on resolutions such as executive remuneration and other matters. In light of the great performance, we discuss the case why we think CEO compensation is not excessive.

View our latest analysis for Tilaknagar Industries

Comparing Tilaknagar Industries Ltd.'s CEO Compensation With The Industry

At the time of writing, our data shows that Tilaknagar Industries Ltd. has a market capitalization of ₹61b, and reported total annual CEO compensation of ₹37m for the year to March 2024. That's a notable increase of 46% on last year. We note that the salary portion, which stands at ₹35.4m constitutes the majority of total compensation received by the CEO.

On comparing similar companies from the Indian Beverage industry with market caps ranging from ₹33b to ₹134b, we found that the median CEO total compensation was ₹37m. So it looks like Tilaknagar Industries compensates Amit Dahanukar in line with the median for the industry. Furthermore, Amit Dahanukar directly owns ₹8.8b worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	₹35m	₹24m	95%
Other	₹1.8m	₹1.2m	5%
Total Compensation	₹37m	₹26m	100%

Talking in terms of the industry, salary represented approximately 83% of total compensation out of all the companies we analyzed, while other remuneration made up 17% of the pie. Tilaknagar Industries pays a high salary, concentrating more on this aspect of compensation in comparison to non-salary pay. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Tilaknagar Industries Ltd.'s Growth

Over the past three years, Tilaknagar Industries Ltd. has seen its earnings per share (EPS) grow by 66% per year. It achieved revenue growth of 13% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. 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 Tilaknagar Industries Ltd. Been A Good Investment?

We think that the total shareholder return of 692%, over three years, would leave most Tilaknagar Industries Ltd. 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...

Tilaknagar Industries pays its CEO a majority of compensation through a salary. Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

So you may want to check if insiders are buying Tilaknagar Industries shares with their own money (free access).

Switching gears from Tilaknagar 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.