Shareholders Will Probably Hold Off On Increasing Max Ventures and Industries Limited's (NSE:MAXVIL) CEO Compensation For The Time Being

Under the guidance of CEO Sahil Vachani, Max Ventures and Industries Limited (NSE:MAXVIL) 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 23 September 2021. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

Check out our latest analysis for Max Ventures and Industries

How Does Total Compensation For Sahil Vachani Compare With Other Companies In The Industry?

At the time of writing, our data shows that Max Ventures and Industries Limited has a market capitalization of ₹14b, and reported total annual CEO compensation of ₹33m for the year to March 2021. Notably, that's an increase of 14% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at ₹14m.

On examining similar-sized companies in the industry with market capitalizations between ₹7.4b and ₹29b, we discovered that the median CEO total compensation of that group was ₹15m. Accordingly, our analysis reveals that Max Ventures and Industries Limited pays Sahil Vachani north of the industry median. Moreover, Sahil Vachani also holds ₹7.2m worth of Max Ventures and Industries stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2021	2020	Proportion (2021)
Salary	₹14m	₹14m	44%
Other	₹18m	₹14m	56%
Total Compensation	₹33m	₹29m	100%

On an industry level, roughly 87% of total compensation represents salary and 13% is other remuneration. It's interesting to note that Max Ventures and Industries allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Max Ventures and Industries Limited's Growth Numbers

Max Ventures and Industries Limited has seen its earnings per share (EPS) increase by 63% a year over the past three years. Its revenue is up 7.2% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. 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 Max Ventures and Industries Limited Been A Good Investment?

We think that the total shareholder return of 59%, over three years, would leave most Max Ventures and Industries Limited shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

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. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 2 warning signs for Max Ventures and Industries 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.
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