Here's Why Shareholders May Want To Be Cautious With Increasing Mohini Health & Hygiene Limited's (NSE:MHHL) CEO Pay Packet

Key Insights

• Mohini Health & Hygiene will host its Annual General Meeting on 28th of September
• Total pay for CEO Avnish Bansal includes ₹8.40m salary
• The overall pay is 77% above the industry average
• Mohini Health & Hygiene's total shareholder return over the past three years was 198% while its EPS grew by 22% over the past three years

Performance at Mohini Health & Hygiene Limited (NSE:MHHL) has been reasonably good and CEO Avnish Bansal has done a decent job of steering the company in the right direction. 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 want to keep CEO compensation within reason.

Check out our latest analysis for Mohini Health & Hygiene

How Does Total Compensation For Avnish Bansal Compare With Other Companies In The Industry?

At the time of writing, our data shows that Mohini Health & Hygiene Limited has a market capitalization of ₹1.1b, and reported total annual CEO compensation of ₹8.4m for 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 ₹8.4m.

On comparing similar-sized companies in the India Medical Equipment industry with market capitalizations below ₹17b, we found that the median total CEO compensation was ₹4.7m. Hence, we can conclude that Avnish Bansal is remunerated higher than the industry median. Furthermore, Avnish Bansal directly owns ₹615m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	₹8.4m	₹8.4m	100%
Other	-	-	-
Total Compensation	₹8.4m	₹8.4m	100%

Speaking on an industry level, all of total compensation represents salary, while non-salary remuneration is completely ignored. At the company level, Mohini Health & Hygiene pays Avnish Bansal solely through a salary, preferring to go down a conventional route. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

Mohini Health & Hygiene Limited's Growth

Mohini Health & Hygiene Limited's earnings per share (EPS) grew 22% per year over the last three years. It achieved revenue growth of 4.0% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Mohini Health & Hygiene Limited Been A Good Investment?

We think that the total shareholder return of 198%, over three years, would leave most Mohini Health & Hygiene Limited 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.

In Summary...

Mohini Health & Hygiene rewards its CEO solely through a salary, ignoring non-salary benefits completely. Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 2 warning signs for Mohini Health & Hygiene that investors should think about before committing capital to this 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.