Why We Think The CEO Of Jayaswal Neco Industries Limited (NSE:JAYNECOIND) May Soon See A Pay Rise

Key Insights

• Jayaswal Neco Industries will host its Annual General Meeting on 26th of September
• Total pay for CEO Ramesh Jayaswal includes ₹15.9m salary
• The overall pay is 35% below the industry average
• Jayaswal Neco Industries' total shareholder return over the past three years was 1,139% while its EPS grew by 98% over the past three years

The solid performance at Jayaswal Neco Industries Limited (NSE:JAYNECOIND) has been impressive and shareholders will probably be pleased to know that CEO Ramesh Jayaswal has delivered. At the upcoming AGM on 26th of September, they would be interested to hear about the company strategy going forward and get a chance to cast their votes on resolutions such as executive remuneration and other company matters. We think the CEO has done a pretty decent job and probably deserves a well-earned pay rise.

View our latest analysis for Jayaswal Neco Industries

How Does Total Compensation For Ramesh Jayaswal Compare With Other Companies In The Industry?

Our data indicates that Jayaswal Neco Industries Limited has a market capitalization of ₹37b, and total annual CEO compensation was reported as ₹17m for the year to March 2023. That's a notable increase of 38% on last year. We note that the salary portion, which stands at ₹15.9m constitutes the majority of total compensation received by the CEO.

On examining similar-sized companies in the Indian Metals and Mining industry with market capitalizations between ₹17b and ₹67b, we discovered that the median CEO total compensation of that group was ₹26m. That is to say, Ramesh Jayaswal is paid under the industry median. Furthermore, Ramesh Jayaswal directly owns ₹91m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, roughly 100% of total compensation represents salary and 0.0956% is other remuneration. Jayaswal Neco Industries is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Jayaswal Neco Industries Limited's Growth

Jayaswal Neco Industries Limited's earnings per share (EPS) grew 98% per year over the last three years. Its revenue is up 3.1% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Jayaswal Neco Industries Limited Been A Good Investment?

We think that the total shareholder return of 1,139%, over three years, would leave most Jayaswal Neco Industries 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 the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in 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.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We identified 4 warning signs for Jayaswal Neco Industries (2 are concerning!) that you should be aware of before investing here.

Important note: Jayaswal Neco Industries 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.