It Looks Like Shareholders Would Probably Approve Jyothy Labs Limited's (NSE:JYOTHYLAB) CEO Compensation Package

Key Insights

• Jyothy Labs to hold its Annual General Meeting on 25th of July
• Total pay for CEO Moothedath Jyothy includes ₹39.4m salary
• The total compensation is similar to the average for the industry
• Jyothy Labs' EPS grew by 23% over the past three years while total shareholder return over the past three years was 197%

We have been pretty impressed with the performance at Jyothy Labs Limited (NSE:JYOTHYLAB) recently and CEO Moothedath Jyothy deserves a mention for their role in it. Shareholders will have this at the front of their minds in the upcoming AGM on 25th of July. It is likely that the focus will be on company strategy going forward as shareholders hear from the board and cast their votes on resolutions such as executive remuneration and other matters. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.

View our latest analysis for Jyothy Labs

How Does Total Compensation For Moothedath Jyothy Compare With Other Companies In The Industry?

Our data indicates that Jyothy Labs Limited has a market capitalization of ₹182b, and total annual CEO compensation was reported as ₹40m for the year to March 2024. Notably, that's an increase of 10% over the year before. Notably, the salary which is ₹39.4m, represents most of the total compensation being paid.

On comparing similar companies from the India Household Products industry with market caps ranging from ₹84b to ₹268b, we found that the median CEO total compensation was ₹51m. This suggests that Jyothy Labs remunerates its CEO largely in line with the industry average. What's more, Moothedath Jyothy holds ₹4.7b 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	₹39m	₹36m	99%
Other	₹360k	₹360k	1%
Total Compensation	₹40m	₹36m	100%

On an industry level, it's fascinating to see that all of total compensation represents salary and non-salary benefits do not factor into the equation at all. Jyothy Labs pays a high salary, concentrating more on this aspect of compensation in comparison to non-salary pay. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Jyothy Labs Limited's Growth

Jyothy Labs Limited's earnings per share (EPS) grew 23% per year over the last three years. It achieved revenue growth of 11% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Jyothy Labs Limited Been A Good Investment?

Most shareholders would probably be pleased with Jyothy Labs Limited for providing a total return of 197% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

Jyothy Labs pays its CEO a majority of compensation through a salary. Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at 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.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We did our research and spotted 1 warning sign for Jyothy Labs that investors should look into moving forward.

Important note: Jyothy Labs is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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