We Think Some Shareholders May Hesitate To Increase NCL Industries Limited's (NSE:NCLIND) CEO Compensation

Under the guidance of CEO Ravi Kalidindi, NCL Industries Limited (NSE:NCLIND) 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 27 September 2022. However, some shareholders will still be cautious of paying the CEO excessively.

See our latest analysis for NCL Industries

Comparing NCL Industries Limited's CEO Compensation With The Industry

Our data indicates that NCL Industries Limited has a market capitalization of ₹8.8b, and total annual CEO compensation was reported as ₹59m for the year to March 2022. That's a notable decrease of 13% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at ₹15m.

For comparison, other companies in the industry with market capitalizations below ₹16b, reported a median total CEO compensation of ₹3.1m. This suggests that Ravi Kalidindi is paid more than the median for the industry. Moreover, Ravi Kalidindi also holds ₹471m worth of NCL Industries stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2022	2021	Proportion (2022)
Salary	₹15m	₹14m	26%
Other	₹44m	₹54m	74%
Total Compensation	₹59m	₹68m	100%

Talking in terms of the industry, salary represented approximately 84% of total compensation out of all the companies we analyzed, while other remuneration made up 16% of the pie. It's interesting to note that NCL Industries allocates a smaller portion of compensation to salary in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at NCL Industries Limited's Growth Numbers

NCL Industries Limited has seen its earnings per share (EPS) increase by 1.8% a year over the past three years. In the last year, its revenue is down 14%.

We would argue that the lack of revenue growth in the last year is less than ideal, but it is good to see a modest EPS growth at least. It's hard to reach a conclusion about business performance right now. This may be one to watch. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has NCL Industries Limited Been A Good Investment?

We think that the total shareholder return of 75%, over three years, would leave most NCL Industries Limited shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar 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. 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 3 warning signs for NCL Industries that you should be aware of before investing.

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.