Here's Why Shareholders May Want To Be Cautious With Increasing Manaksia Limited's (NSE:MANAKSIA) CEO Pay Packet

Under the guidance of CEO Suresh Agrawal, Manaksia Limited (NSE:MANAKSIA) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 27 September 2022. However, some shareholders will still be cautious of paying the CEO excessively.

Check out our latest analysis for Manaksia

Comparing Manaksia Limited's CEO Compensation With The Industry

At the time of writing, our data shows that Manaksia Limited has a market capitalization of ₹5.3b, and reported total annual CEO compensation of ₹8.4m for the year to March 2022. This was the same as last year. It is worth noting that the CEO compensation consists entirely of the salary, worth ₹8.4m.

On comparing similar-sized companies in the industry with market capitalizations below ₹16b, we found that the median total CEO compensation was ₹3.8m. Accordingly, our analysis reveals that Manaksia Limited pays Suresh Agrawal north of the industry median. What's more, Suresh Agrawal holds ₹526m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2022	2021	Proportion (2022)
Salary	₹8.4m	₹8.4m	100%
Other	-	-	-
Total Compensation	₹8.4m	₹8.4m	100%

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. At the company level, Manaksia pays Suresh Agrawal 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.

Manaksia Limited's Growth

Manaksia Limited's earnings per share (EPS) grew 29% per year over the last three years. It achieved revenue growth of 26% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. 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 Manaksia Limited Been A Good Investment?

Most shareholders would probably be pleased with Manaksia Limited for providing a total return of 200% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

To Conclude...

Manaksia pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus 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 can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 1 warning sign for Manaksia that investors should think about before committing capital to this stock.

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.