Why We Think Mayur Uniquoters Limited's (NSE:MAYURUNIQ) CEO Compensation Is Not Excessive At All

Key Insights

• Mayur Uniquoters to hold its Annual General Meeting on 14th of September
• CEO Suresh Poddar's total compensation includes salary of ₹20.5m
• The overall pay is comparable to the industry average
• Mayur Uniquoters' total shareholder return over the past three years was 33% while its EPS grew by 8.3% over the past three years

Performance at Mayur Uniquoters Limited (NSE:MAYURUNIQ) has been reasonably good and CEO Suresh Poddar has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 14th of September, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. Here is our take on why we think the CEO compensation looks appropriate.

Check out our latest analysis for Mayur Uniquoters

How Does Total Compensation For Suresh Poddar Compare With Other Companies In The Industry?

According to our data, Mayur Uniquoters Limited has a market capitalization of ₹28b, and paid its CEO total annual compensation worth ₹22m over the year to March 2024. That is, the compensation was roughly the same as last year. In particular, the salary of ₹20.5m, 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 ₹17b to ₹67b, the reported median CEO total compensation was ₹23m. This suggests that Mayur Uniquoters remunerates its CEO largely in line with the industry average. Furthermore, Suresh Poddar directly owns ₹12b worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	₹21m	₹19m	91%
Other	₹2.0m	₹3.1m	9%
Total Compensation	₹22m	₹22m	100%

Talking in terms of the industry, salary represented approximately 89% of total compensation out of all the companies we analyzed, while other remuneration made up 11% of the pie. 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 dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Mayur Uniquoters Limited's Growth Numbers

Mayur Uniquoters Limited's earnings per share (EPS) grew 8.3% per year over the last three years. Its revenue is up 5.0% over the last year.

We'd prefer higher revenue growth, but it is good to see modest EPS growth. So there are some positives here, but not enough to earn high praise. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Mayur Uniquoters Limited Been A Good Investment?

With a total shareholder return of 33% over three years, Mayur Uniquoters Limited shareholders would, in general, be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. In saying that, any proposed increase to CEO compensation will still be assessed on how reasonable it is based on performance and industry benchmarks.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 1 warning sign for Mayur Uniquoters that investors should be aware of in a dynamic business environment.

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.