We Think Shareholders Will Probably Be Generous With Coromandel International Limited's (NSE:COROMANDEL) CEO Compensation

It would be hard to discount the role that CEO Sameer Goel has played in delivering the impressive results at Coromandel International Limited (NSE:COROMANDEL) recently. Shareholders will have this at the front of their minds in the upcoming AGM on 26 July 2021. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. In light of the great performance, we discuss the case why we think CEO compensation is not excessive.

Check out our latest analysis for Coromandel International

Comparing Coromandel International Limited's CEO Compensation With the industry

According to our data, Coromandel International Limited has a market capitalization of ₹255b, and paid its CEO total annual compensation worth ₹88m over the year to March 2021. That's a notable increase of 77% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at ₹34m.

In comparison with other companies in the industry with market capitalizations ranging from ₹149b to ₹478b, the reported median CEO total compensation was ₹73m. So it looks like Coromandel International compensates Sameer Goel in line with the median for the industry. Furthermore, Sameer Goel directly owns ₹8.7m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2021	2020	Proportion (2021)
Salary	₹34m	₹30m	39%
Other	₹54m	₹19m	61%
Total Compensation	₹88m	₹50m	100%

Talking in terms of the industry, salary represented approximately 88% of total compensation out of all the companies we analyzed, while other remuneration made up 12% of the pie. Coromandel International sets aside a smaller share of compensation for salary, in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at Coromandel International Limited's Growth Numbers

Coromandel International Limited has seen its earnings per share (EPS) increase by 24% a year over the past three years. In the last year, its revenue is up 8.2%.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Coromandel International Limited Been A Good Investment?

Most shareholders would probably be pleased with Coromandel International Limited for providing a total return of 127% 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...

Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in 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. That's why we did some digging and identified 2 warning signs for Coromandel International 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.

If you’re looking to trade Coromandel International, open an account with the lowest-cost* platform trusted by professionals, Interactive Brokers. Their clients from over 200 countries and territories trade stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.