The CEO Of Kiri Industries Limited (NSE:KIRIINDUS) Might See A Pay Rise On The Horizon

The decent performance at Kiri Industries Limited (NSE:KIRIINDUS) recently will please most shareholders as they go into the AGM coming up on 29 September 2022. They will probably be more interested in hearing the board discuss future initiatives to further improve the business as they vote on resolutions such as executive remuneration. We have prepared some analysis below and we show why we think CEO compensation looks decent with even the possibility for a raise.

See our latest analysis for Kiri Industries

How Does Total Compensation For Manishbhai Kiri Compare With Other Companies In The Industry?

Our data indicates that Kiri Industries Limited has a market capitalization of ₹26b, and total annual CEO compensation was reported as ₹16m for the year to March 2022. Notably, that's an increase of 8.3% over the year before. Notably, the salary of ₹16m is the entirety of the CEO compensation.

For comparison, other companies in the same industry with market capitalizations ranging between ₹16b and ₹64b had a median total CEO compensation of ₹24m. This suggests that Manishbhai Kiri is paid below the industry median. Moreover, Manishbhai Kiri also holds ₹878m 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	2022	2021	Proportion (2022)
Salary	₹16m	₹14m	100%
Other	-	-	-
Total Compensation	₹16m	₹14m	100%

On an industry level, around 86% of total compensation represents salary and 14% is other remuneration. At the company level, Kiri Industries pays Manishbhai Kiri solely through a salary, preferring to go down a conventional route. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

Kiri Industries Limited's Growth

Over the past three years, Kiri Industries Limited has seen its earnings per share (EPS) grow by 33% per year. Its revenue is up 30% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. 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 Kiri Industries Limited Been A Good Investment?

With a total shareholder return of 11% over three years, Kiri Industries Limited shareholders would, in general, be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

To Conclude...

Kiri Industries pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. Overall, the company hasn't done too poorly performance-wise, but we would like to see some improvement. Assuming the business continues to grow at a good clip, few shareholders would raise any objections to the CEO's remuneration. 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.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 2 warning signs for Kiri Industries that you should be aware of before investing.

Important note: Kiri 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.