Increases to Incredible Industries Limited's (NSE:INCREDIBLE) CEO Compensation Might Cool off for now

Key Insights

• Incredible Industries to hold its Annual General Meeting on 29th of September
• Salary of ₹4.87m is part of CEO Rama Gupta's total remuneration
• The overall pay is 33% above the industry average
• Incredible Industries' EPS grew by 56% over the past three years while total shareholder return over the past three years was 54%

Performance at Incredible Industries Limited (NSE:INCREDIBLE) has been reasonably good and CEO Rama Gupta 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 29th of September. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

Check out our latest analysis for Incredible Industries

How Does Total Compensation For Rama Gupta Compare With Other Companies In The Industry?

Our data indicates that Incredible Industries Limited has a market capitalization of ₹1.3b, and total annual CEO compensation was reported as ₹4.9m for the year to March 2023. This was the same amount the CEO received in the prior year. Notably, the salary of ₹4.9m is the entirety of the CEO compensation.

In comparison with other companies in the Indian Metals and Mining industry with market capitalizations under ₹17b, the reported median total CEO compensation was ₹3.7m. Hence, we can conclude that Rama Gupta is remunerated higher than the industry median.

On an industry level, around 100% of total compensation represents salary and 0.0956% is other remuneration. Speaking on a company level, Incredible Industries prefers to tread along a traditional path, disbursing all compensation through a salary. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Incredible Industries Limited's Growth Numbers

Incredible Industries Limited has seen its earnings per share (EPS) increase by 56% a year over the past three years. It achieved revenue growth of 36% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. 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 Incredible Industries Limited Been A Good Investment?

We think that the total shareholder return of 54%, over three years, would leave most Incredible Industries Limited shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Incredible Industries pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. That's why we did our research, and identified 2 warning signs for Incredible Industries (of which 1 doesn't sit too well with us!) that you should know about in order to have a holistic understanding of the stock.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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.