Shareholders May Be More Conservative With IFGL Refractories Limited's (NSE:IFGLEXPOR) CEO Compensation For Now

Performance at IFGL Refractories Limited (NSE:IFGLEXPOR) has been reasonably good and CEO Kamal Sarda 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 28 September 2022. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

Check out our latest analysis for IFGL Refractories

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

At the time of writing, our data shows that IFGL Refractories Limited has a market capitalization of ₹9.6b, and reported total annual CEO compensation of ₹13m for the year to March 2022. We note that's an increase of 20% above last year. Notably, the salary which is ₹11.7m, represents most of the total compensation being paid.

In comparison with other companies in the industry with market capitalizations under ₹16b, the reported median total CEO compensation was ₹2.7m. Hence, we can conclude that Kamal Sarda is remunerated higher than the industry median. Furthermore, Kamal Sarda directly owns ₹957k worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2022	2021	Proportion (2022)
Salary	₹12m	₹9.5m	91%
Other	₹1.1m	₹1.2m	9%
Total Compensation	₹13m	₹11m	100%

On an industry level, roughly 84% of total compensation represents salary and 16% is other remuneration. Although there is a difference in how total compensation is set, IFGL Refractories more or less reflects the market in terms of setting the salary. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

IFGL Refractories Limited's Growth

Over the past three years, IFGL Refractories Limited has seen its earnings per share (EPS) grow by 15% per year. It achieved revenue growth of 23% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. 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 IFGL Refractories Limited Been A Good Investment?

We think that the total shareholder return of 64%, 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.

To Conclude...

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, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

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 IFGL Refractories that investors should think about before committing capital to this stock.

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.

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

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.