Here's Why Some Shareholders May Not Be Too Generous With Kiri Industries Limited's (NSE:KIRIINDUS) CEO Compensation This Year

Key Insights

• Kiri Industries will host its Annual General Meeting on 26th of September
• Salary of ₹15.6m is part of CEO Manishbhai Kiri's total remuneration
• Total compensation is 32% below industry average
• Kiri Industries' EPS declined by 53% over the past three years while total shareholder loss over the past three years was 47%

Performance at Kiri Industries Limited (NSE:KIRIINDUS) has not been particularly rosy recently and shareholders will likely be holding CEO Manishbhai Kiri and the board accountable for this. The next AGM coming up on 26th of September will be a chance for shareholders to have their concerns addressed by the board, challenge management on company strategy and vote on resolutions such as executive remuneration, which may help change the company's future prospects. The data we gathered below shows that CEO compensation looks acceptable for now.

See our latest analysis for Kiri Industries

Comparing Kiri Industries Limited's CEO Compensation With The Industry

Our data indicates that Kiri Industries Limited has a market capitalization of ₹14b, and total annual CEO compensation was reported as ₹16m for the year to March 2023. This was the same amount the CEO received in the prior year. Notably, the salary of ₹16m is the entirety of the CEO compensation.

For comparison, other companies in the Indian Chemicals industry with market capitalizations ranging between ₹8.3b and ₹33b had a median total CEO compensation of ₹23m. That is to say, Manishbhai Kiri is paid under the industry median. Moreover, Manishbhai Kiri also holds ₹481m worth of Kiri Industries stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2023	2022	Proportion (2023)
Salary	₹16m	₹16m	100%
Other	-	-	-
Total Compensation	₹16m	₹16m	100%

Talking in terms of the industry, salary represented approximately 86% of total compensation out of all the companies we analyzed, while other remuneration made up 14% of the pie. Speaking on a company level, Kiri 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.

Kiri Industries Limited's Growth

Over the last three years, Kiri Industries Limited has shrunk its earnings per share by 53% per year. It saw its revenue drop 40% over the last 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. 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 Kiri Industries Limited Been A Good Investment?

Few Kiri Industries Limited shareholders would feel satisfied with the return of -47% over three years. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Kiri Industries pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

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. We did our research and identified 2 warning signs (and 1 which is concerning) in Kiri Industries we think you should know about.

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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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.