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

Key Insights

• PI Industries' Annual General Meeting to take place on 27th of August
• CEO Mayank Singhal's total compensation includes salary of ₹46.2m
• Total compensation is 34% above industry average
• Over the past three years, PI Industries' EPS grew by 31% and over the past three years, the total shareholder return was 39%

Performance at PI Industries Limited (NSE:PIIND) has been reasonably good and CEO Mayank Singhal has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 27th of August, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still want to keep CEO compensation within reason.

See our latest analysis for PI Industries

How Does Total Compensation For Mayank Singhal Compare With Other Companies In The Industry?

According to our data, PI Industries Limited has a market capitalization of ₹657b, and paid its CEO total annual compensation worth ₹250m over the year to March 2024. Notably, that's an increase of 31% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at ₹46m.

On comparing similar companies from the Indian Chemicals industry with market caps ranging from ₹335b to ₹1.0t, we found that the median CEO total compensation was ₹187m. Hence, we can conclude that Mayank Singhal is remunerated higher than the industry median. What's more, Mayank Singhal holds ₹134b worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2024	2023	Proportion (2024)
Salary	₹46m	₹42m	18%
Other	₹204m	₹149m	82%
Total Compensation	₹250m	₹191m	100%

On an industry level, around 87% of total compensation represents salary and 13% is other remuneration. PI Industries pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

PI Industries Limited's Growth

PI Industries Limited's earnings per share (EPS) grew 31% per year over the last three years. Its revenue is up 14% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has PI Industries Limited Been A Good Investment?

Boasting a total shareholder return of 39% over three years, PI Industries 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...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 1 warning sign for PI Industries that you should be aware of before investing.

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.