We Think Some Shareholders May Hesitate To Increase Manaksia Steels Limited's (NSE:MANAKSTEEL) CEO Compensation

Under the guidance of CEO Vineet Agrawal, Manaksia Steels Limited (NSE:MANAKSTEEL) has performed reasonably well 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 27 September 2022. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

View our latest analysis for Manaksia Steels

How Does Total Compensation For Vineet Agrawal Compare With Other Companies In The Industry?

At the time of writing, our data shows that Manaksia Steels Limited has a market capitalization of ₹2.5b, and reported total annual CEO compensation of ₹23m 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 ₹23m.

In comparison with other companies in the industry with market capitalizations under ₹16b, the reported median total CEO compensation was ₹3.8m. Hence, we can conclude that Vineet Agrawal is remunerated higher than the industry median.

Talking in terms of the industry, salary represents all of total compensation among the companies we analyzed, while other remuneration is, interestingly, completely ignored. At the company level, Manaksia Steels pays Vineet Agrawal solely through a salary, preferring to go down a conventional route. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Manaksia Steels Limited's Growth

Manaksia Steels Limited's earnings per share (EPS) grew 61% per year over the last three years. Its revenue is up 25% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. 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 Steels Limited Been A Good Investment?

Boasting a total shareholder return of 209% over three years, Manaksia Steels Limited has done well by shareholders. 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 Steels pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 2 warning signs for Manaksia Steels that investors should look into moving forward.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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.