Shareholders May Not Be So Generous With Maithan Alloys Limited's (NSE:MAITHANALL) CEO Compensation And Here's Why

Key Insights

• Maithan Alloys' Annual General Meeting to take place on 27th of September
• CEO Subodh Agarwalla's total compensation includes salary of ₹7.20m
• The overall pay is 146% above the industry average
• Maithan Alloys' EPS declined by 8.5% over the past three years while total shareholder return over the past three years was 21%

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CEO Subodh Agarwalla has done a decent job of delivering relatively good performance at Maithan Alloys Limited (NSE:MAITHANALL) recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 27th of September. However, some shareholders may still want to keep CEO compensation within reason.

Check out our latest analysis for Maithan Alloys

Comparing Maithan Alloys Limited's CEO Compensation With The Industry

According to our data, Maithan Alloys Limited has a market capitalization of ₹34b, and paid its CEO total annual compensation worth ₹47m over the year to March 2025. We note that's a decrease of 33% compared to last year. While we always look at total compensation first, our analysis shows that the salary component is less, at ₹7.2m.

On comparing similar companies from the Indian Metals and Mining industry with market caps ranging from ₹18b to ₹70b, we found that the median CEO total compensation was ₹19m. This suggests that Subodh Agarwalla is paid more than the median for the industry. Moreover, Subodh Agarwalla also holds ₹59m worth of Maithan 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, it's fascinating to see that all of total compensation represents salary and non-salary benefits do not factor into the equation at all. It's interesting to note that Maithan Alloys allocates a smaller portion of compensation to salary in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at Maithan Alloys Limited's Growth Numbers

Over the last three years, Maithan Alloys Limited has shrunk its earnings per share by 8.5% per year. It achieved revenue growth of 21% over the last year.

Investors would be a bit wary of companies that have lower EPS But on the other hand, revenue growth is strong, suggesting a brighter future. It's hard to reach a conclusion about business performance right now. This may be one to watch. 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 Maithan Alloys Limited Been A Good Investment?

Maithan Alloys Limited has generated a total shareholder return of 21% over three years, so most shareholders would be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

The overall company performance has been commendable, however there are still areas for improvement. We still think that some shareholders will be hesitant of increasing CEO pay until EPS growth improves, since they are already paid higher than the industry.

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 Maithan Alloys that investors should think about before committing capital to this stock.

Switching gears from Maithan 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.