Shareholders Will Probably Hold Off On Increasing Manaksia Limited's (NSE:MANAKSIA) CEO Compensation For The Time Being

Performance at Manaksia Limited (NSE:MANAKSIA) has been reasonably good and CEO Suresh Agrawal has done a decent job of steering the company in the right direction. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 21 September 2021. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

See our latest analysis for Manaksia

Comparing Manaksia Limited's CEO Compensation With the industry

Our data indicates that Manaksia Limited has a market capitalization of ₹4.4b, and total annual CEO compensation was reported as ₹8.4m for the year to March 2021. There was no change in the compensation compared to last year. It is worth noting that the CEO compensation consists entirely of the salary, worth ₹8.4m.

In comparison with other companies in the industry with market capitalizations under ₹15b, the reported median total CEO compensation was ₹3.0m. Accordingly, our analysis reveals that Manaksia Limited pays Suresh Agrawal north of the industry median. What's more, Suresh Agrawal holds ₹442m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2021	2020	Proportion (2021)
Salary	₹8.4m	₹8.4m	100%
Other	-	-	-
Total Compensation	₹8.4m	₹8.4m	100%

On an industry level, around 100% of total compensation represents salary and 0.2478% is other remuneration. Speaking on a company level, Manaksia prefers to tread along a traditional path, disbursing all compensation through a salary. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Manaksia Limited's Growth

Over the last three years, Manaksia Limited has shrunk its earnings per share by 8.7% per year. Its revenue is up 24% over the last year.

The decrease in EPS could be a concern for some investors. On the other hand, the strong revenue growth suggests the business is growing. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. 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 Manaksia Limited Been A Good Investment?

We think that the total shareholder return of 115%, over three years, would leave most Manaksia Limited shareholders smiling. 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. Although the company has performed relatively well, we still think there are some areas that could be improved. 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.

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. In our study, we found 3 warning signs for Manaksia you should be aware of, and 1 of them is a bit concerning.

Important note: Manaksia 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.
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