We Discuss Whether National Aluminium Company Limited's (NSE:NATIONALUM) CEO Is Due For A Pay Rise

Key Insights

• National Aluminium's Annual General Meeting to take place on 27th of September
• Total pay for CEO Sridhar Patra includes ₹6.38m salary
• The overall pay is 60% below the industry average
• National Aluminium's total shareholder return over the past three years was 142% while its EPS grew by 12% over the past three years

Shareholders will be pleased by the impressive results for National Aluminium Company Limited (NSE:NATIONALUM) recently and CEO Sridhar Patra has played a key role. This would be kept in mind at the upcoming AGM on 27th of September which will be a chance for them to hear the board review the financial results, discuss future company strategy and vote on resolutions such as executive remuneration and other matters. We think the CEO has done a pretty decent job and probably deserves a well-earned pay rise.

View our latest analysis for National Aluminium

How Does Total Compensation For Sridhar Patra Compare With Other Companies In The Industry?

According to our data, National Aluminium Company Limited has a market capitalization of ₹338b, and paid its CEO total annual compensation worth ₹8.3m over the year to March 2024. That's mostly flat as compared to the prior year's compensation. We note that the salary portion, which stands at ₹6.38m constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the Indian Metals and Mining industry with market capitalizations ranging between ₹167b and ₹535b had a median total CEO compensation of ₹21m. This suggests that Sridhar Patra is paid below the industry median.

Component	2024	2023	Proportion (2024)
Salary	₹6.4m	₹6.4m	77%
Other	₹1.9m	₹2.1m	23%
Total Compensation	₹8.3m	₹8.5m	100%

On an industry level, around 100% of total compensation represents salary and 0.14164306% is other remuneration. In National Aluminium's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. 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 National Aluminium Company Limited's Growth Numbers

National Aluminium Company Limited's earnings per share (EPS) grew 12% per year over the last three years. In the last year, its revenue is down 6.0%.

This demonstrates that the company has been improving recently and is good news for the shareholders. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has National Aluminium Company Limited Been A Good Investment?

Boasting a total shareholder return of 142% over three years, National Aluminium Company Limited has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

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. We did our research and spotted 1 warning sign for National Aluminium that investors should look into moving forward.

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.