Shareholders May Not Be So Generous With Bayer CropScience Limited's (NSE:BAYERCROP) CEO Compensation And Here's Why

Performance at Bayer CropScience Limited (NSE:BAYERCROP) has been reasonably good and CEO Duraiswami Narain 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 12 August 2021. However, some shareholders may still want to keep CEO compensation within reason.

See our latest analysis for Bayer CropScience

How Does Total Compensation For Duraiswami Narain Compare With Other Companies In The Industry?

According to our data, Bayer CropScience Limited has a market capitalization of ₹265b, and paid its CEO total annual compensation worth ₹147m over the year to March 2021. That's a fairly small increase of 4.8% over the previous year. Notably, the salary which is ₹129.0m, represents most of the total compensation being paid.

On comparing similar companies from the same industry with market caps ranging from ₹148b to ₹475b, we found that the median CEO total compensation was ₹68m. This suggests that Duraiswami Narain is paid more than the median for the industry.

Component	2021	2020	Proportion (2021)
Salary	₹129m	₹118m	88%
Other	₹18m	₹23m	12%
Total Compensation	₹147m	₹141m	100%

On an industry level, roughly 89% of total compensation represents salary and 11% is other remuneration. There isn't a significant difference between Bayer CropScience and the broader market, in terms of salary allocation in the overall compensation package. 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.

A Look at Bayer CropScience Limited's Growth Numbers

Over the past three years, Bayer CropScience Limited has seen its earnings per share (EPS) grow by 8.4% per year. Its revenue is up 18% over the last year.

This revenue growth could really point to a brighter future. And the improvement in EPSis modest but respectable. So while we'd stop just short of calling this a top performer, but we think it is well worth watching. 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 Bayer CropScience Limited Been A Good Investment?

Boasting a total shareholder return of 45% over three years, Bayer CropScience 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.

To Conclude...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed 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 compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 1 warning sign for Bayer CropScience that you should be aware of before investing.

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. 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.
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