We Think Shareholders Will Probably Be Generous With Mayur Uniquoters Limited's (NSE:MAYURUNIQ) CEO Compensation

Key Insights

• Mayur Uniquoters will host its Annual General Meeting on 14th of September
• Total pay for CEO Suresh Poddar includes ₹19.2m salary
• The total compensation is similar to the average for the industry
• Over the past three years, Mayur Uniquoters' EPS grew by 17% and over the past three years, the total shareholder return was 106%

It would be hard to discount the role that CEO Suresh Poddar has played in delivering the impressive results at Mayur Uniquoters Limited (NSE:MAYURUNIQ) recently. Shareholders will have this at the front of their minds in the upcoming AGM on 14th of September. The focus will probably be on the future company strategy as shareholders cast their votes on resolutions such as executive remuneration and other matters. In light of the great performance, we discuss the case why we think CEO compensation is not excessive.

See our latest analysis for Mayur Uniquoters

Comparing Mayur Uniquoters Limited's CEO Compensation With The Industry

According to our data, Mayur Uniquoters Limited has a market capitalization of ₹24b, and paid its CEO total annual compensation worth ₹22m over the year to March 2023. That's a slight decrease of 6.5% on the prior year. In particular, the salary of ₹19.2m, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the Indian Chemicals industry with market capitalizations ranging from ₹8.3b to ₹33b, the reported median CEO total compensation was ₹19m. So it looks like Mayur Uniquoters compensates Suresh Poddar in line with the median for the industry. Moreover, Suresh Poddar also holds ₹10b worth of Mayur Uniquoters stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2023	2022	Proportion (2023)
Salary	₹19m	₹21m	86%
Other	₹3.1m	₹2.7m	14%
Total Compensation	₹22m	₹24m	100%

On an industry level, around 86% of total compensation represents salary and 14% is other remuneration. Although there is a difference in how total compensation is set, Mayur Uniquoters more or less reflects the market in terms of setting the salary. 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.

A Look at Mayur Uniquoters Limited's Growth Numbers

Mayur Uniquoters Limited has seen its earnings per share (EPS) increase by 17% a year over the past three years. It achieved revenue growth of 5.1% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Mayur Uniquoters Limited Been A Good Investment?

Boasting a total shareholder return of 106% over three years, Mayur Uniquoters Limited has done well by shareholders. 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 the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 1 warning sign for Mayur Uniquoters that investors should think about before committing capital to this stock.

Switching gears from Mayur Uniquoters, 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.