Increases to CEO Compensation Might Be Put On Hold For Now at MMP Industries Limited (NSE:MMP)

Key Insights

• MMP Industries' Annual General Meeting to take place on 28th of August
• Total pay for CEO Arun Bhandari includes ₹13.4m salary
• Total compensation is 296% above industry average
• MMP Industries' EPS grew by 16% over the past three years while total shareholder return over the past three years was 176%

Under the guidance of CEO Arun Bhandari, MMP Industries Limited (NSE:MMP) 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 28th of August. However, some shareholders may still want to keep CEO compensation within reason.

View our latest analysis for MMP Industries

Comparing MMP Industries Limited's CEO Compensation With The Industry

According to our data, MMP Industries Limited has a market capitalization of ₹10b, and paid its CEO total annual compensation worth ₹13m over the year to March 2024. This was the same amount the CEO received in the prior year. It is worth noting that the CEO compensation consists entirely of the salary, worth ₹13m.

In comparison with other companies in the Indian Metals and Mining industry with market capitalizations under ₹17b, the reported median total CEO compensation was ₹3.4m. This suggests that Arun Bhandari is paid more than the median for the industry. Moreover, Arun Bhandari also holds ₹5.2b worth of MMP Industries stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2024	2023	Proportion (2024)
Salary	₹13m	₹13m	100%
Other	-	-	-
Total Compensation	₹13m	₹13m	100%

On an industry level, roughly 100% of total compensation represents salary and 0.03817986% is other remuneration. On a company level, MMP Industries prefers to reward its CEO through a salary, opting not to pay Arun Bhandari through non-salary benefits. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

MMP Industries Limited's Growth

Over the past three years, MMP Industries Limited has seen its earnings per share (EPS) grow by 16% per year. It achieved revenue growth of 7.6% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has MMP Industries Limited Been A Good Investment?

We think that the total shareholder return of 176%, over three years, would leave most MMP Industries Limited shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

MMP Industries pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. 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. 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 CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 1 warning sign for MMP Industries that investors should think about before committing capital to this stock.

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.