Here's Why Shareholders Will Not Be Complaining About Hindustan Copper Limited's (NSE:HINDCOPPER) CEO Pay Packet

We have been pretty impressed with the performance at Hindustan Copper Limited (NSE:HINDCOPPER) recently and CEO Arun Shukla deserves a mention for their role in it. Coming up to the next AGM on 28 September 2022, shareholders would be keeping this in mind. 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 Hindustan Copper

Comparing Hindustan Copper Limited's CEO Compensation With The Industry

Our data indicates that Hindustan Copper Limited has a market capitalization of ₹111b, and total annual CEO compensation was reported as ₹6.1m for the year to March 2022. We note that's an increase of 21% above last year. In particular, the salary of ₹4.91m, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar companies from the same industry with market caps ranging from ₹80b to ₹255b, we found that the median CEO total compensation was ₹6.5m. This suggests that Hindustan Copper remunerates its CEO largely in line with the industry average.

Component	2022	2021	Proportion (2022)
Salary	₹4.9m	₹4.4m	80%
Other	₹1.2m	₹646k	20%
Total Compensation	₹6.1m	₹5.1m	100%

Speaking on an industry level, all of total compensation represents salary, while non-salary remuneration is completely ignored. Hindustan Copper pays a modest slice of remuneration through salary, as compared to the broader industry. 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.

Hindustan Copper Limited's Growth

Over the past three years, Hindustan Copper Limited has seen its earnings per share (EPS) grow by 41% per year. It achieved revenue growth of 18% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Hindustan Copper Limited Been A Good Investment?

Boasting a total shareholder return of 218% over three years, Hindustan Copper 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.

In Summary...

The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and 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 1 warning sign for Hindustan Copper that investors should think about before committing capital to this stock.

Important note: Hindustan Copper 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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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.