It's Unlikely That Indian Metals and Ferro Alloys Limited's (NSE:IMFA) CEO Will See A Huge Pay Rise This Year

Key Insights

• Indian Metals and Ferro Alloys' Annual General Meeting to take place on 30th of July
• Total pay for CEO Subhrakant Panda includes ₹50.4m salary
• The overall pay is 1,325% above the industry average
• Indian Metals and Ferro Alloys' total shareholder return over the past three years was 199% while its EPS was down 9.3% over the past three years

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Indian Metals and Ferro Alloys Limited (NSE:IMFA) has exhibited strong share price growth in the past few years. However, its earnings growth has not kept up, suggesting that there may be something amiss. The upcoming AGM on 30th of July may be an opportunity for shareholders to bring up any concerns they may have for the board’s attention. They will be able to influence managerial decisions through the exercise of their voting power on resolutions, such as CEO remuneration and other matters, which may influence future company prospects. In our analysis below, we show why shareholders may consider holding off a raise for the CEO's compensation until company performance improves.

See our latest analysis for Indian Metals and Ferro Alloys

How Does Total Compensation For Subhrakant Panda Compare With Other Companies In The Industry?

According to our data, Indian Metals and Ferro Alloys Limited has a market capitalization of ₹41b, and paid its CEO total annual compensation worth ₹217m over the year to March 2025. That's mostly flat as compared to the prior year's compensation. While we always look at total compensation first, our analysis shows that the salary component is less, at ₹50m.

In comparison with other companies in the Indian Metals and Mining industry with market capitalizations ranging from ₹17b to ₹69b, the reported median CEO total compensation was ₹15m. Accordingly, our analysis reveals that Indian Metals and Ferro Alloys Limited pays Subhrakant Panda north of the industry median. Moreover, Subhrakant Panda also holds ₹22b worth of Indian Metals and Ferro Alloys stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, around 100% of total compensation represents salary and 0.13928681% is other remuneration. In Indian Metals and Ferro Alloys' case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader 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 Indian Metals and Ferro Alloys Limited's Growth Numbers

Over the last three years, Indian Metals and Ferro Alloys Limited has shrunk its earnings per share by 9.3% per year. Its revenue is down 7.8% over the previous year.

Few shareholders would be pleased to read that EPS have declined. This is compounded by the fact revenue is actually down on last year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. 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 Indian Metals and Ferro Alloys Limited Been A Good Investment?

Most shareholders would probably be pleased with Indian Metals and Ferro Alloys Limited for providing a total return of 199% over three years. 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...

Although shareholders would be quite happy with the returns they have earned on their initial investment, earnings have failed to grow and this could mean returns may be hard to keep up. In the upcoming AGM, shareholders will get the opportunity to discuss any concerns with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.

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 Indian Metals and Ferro Alloys that investors should think about before committing capital to this stock.

Switching gears from Indian Metals and Ferro Alloys, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.