Increases to CEO Compensation Might Be Put On Hold For Now at Ashapura Minechem Limited (NSE:ASHAPURMIN)

Under the guidance of CEO Hemul Shah, Ashapura Minechem Limited (NSE:ASHAPURMIN) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 28 September 2022. However, some shareholders will still be cautious of paying the CEO excessively.

Check out our latest analysis for Ashapura Minechem

How Does Total Compensation For Hemul Shah Compare With Other Companies In The Industry?

Our data indicates that Ashapura Minechem Limited has a market capitalization of ₹8.6b, and total annual CEO compensation was reported as ₹5.4m for the year to March 2022. That's a notable increase of 28% on last year. Notably, the salary of ₹5.4m is the entirety of the CEO compensation.

In comparison with other companies in the industry with market capitalizations under ₹16b, the reported median total CEO compensation was ₹3.6m. Hence, we can conclude that Hemul Shah is remunerated higher than the industry median.

Component	2022	2021	Proportion (2022)
Salary	₹5.4m	₹4.2m	100%
Other	-	-	-
Total Compensation	₹5.4m	₹4.2m	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. On a company level, Ashapura Minechem prefers to reward its CEO through a salary, opting not to pay Hemul Shah through 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.

Ashapura Minechem Limited's Growth

Ashapura Minechem Limited's earnings per share (EPS) grew 16% per year over the last three years. It saw its revenue drop 6.5% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Ashapura Minechem Limited Been A Good Investment?

Boasting a total shareholder return of 259% over three years, Ashapura Minechem Limited has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

To Conclude...

Ashapura Minechem 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. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 3 warning signs (and 1 which is a bit concerning) in Ashapura Minechem we think you should know about.

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.