It Looks Like The CEO Of IFGL Refractories Limited (NSE:IFGLEXPOR) May Be Underpaid Compared To Peers

The solid performance at IFGL Refractories Limited (NSE:IFGLEXPOR) has been impressive and shareholders will probably be pleased to know that CEO Kamal Sarda has delivered. This would be kept in mind at the upcoming AGM on 07 August 2021 which will be a chance for them to hear the board review the financial results, discuss future company strategy and vote on resolutions such as executive remuneration and other matters. We think the CEO has done a pretty decent job and probably deserves a well-earned pay rise.

See our latest analysis for IFGL Refractories

How Does Total Compensation For Kamal Sarda Compare With Other Companies In The Industry?

Our data indicates that IFGL Refractories Limited has a market capitalization of ₹15b, and total annual CEO compensation was reported as ₹11m for the year to March 2021. That's a modest increase of 4.5% on the prior year. In particular, the salary of ₹9.49m, 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 ₹7.4b to ₹30b, we found that the median CEO total compensation was ₹20m. This suggests that Kamal Sarda is paid below the industry median. Furthermore, Kamal Sarda directly owns ₹1.5m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2021	2020	Proportion (2021)
Salary	₹9.5m	₹9.0m	89%
Other	₹1.2m	₹1.2m	11%
Total Compensation	₹11m	₹10m	100%

Speaking on an industry level, nearly 87% of total compensation represents salary, while the remainder of 13% is other remuneration. Our data reveals that IFGL Refractories allocates salary more or less in line with the wider market. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

IFGL Refractories Limited's Growth

IFGL Refractories Limited's earnings per share (EPS) grew 12% 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. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has IFGL Refractories Limited Been A Good Investment?

We think that the total shareholder return of 77%, over three years, would leave most IFGL Refractories Limited shareholders smiling. 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...

Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 1 warning sign for IFGL Refractories that investors should look into moving forward.

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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