Shareholders May Be More Conservative With Ratnamani Metals & Tubes Limited's (NSE:RATNAMANI) CEO Compensation For Now

Key Insights

• Ratnamani Metals & Tubes' Annual General Meeting to take place on 27th of August
• Total pay for CEO Prakash Sanghvi includes ₹22.8m salary
• The overall pay is 792% above the industry average
• Ratnamani Metals & Tubes' EPS grew by 29% over the past three years while total shareholder return over the past three years was 158%

Under the guidance of CEO Prakash Sanghvi, Ratnamani Metals & Tubes Limited (NSE:RATNAMANI) 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 27th of August. However, some shareholders will still be cautious of paying the CEO excessively.

Check out our latest analysis for Ratnamani Metals & Tubes

How Does Total Compensation For Prakash Sanghvi Compare With Other Companies In The Industry?

According to our data, Ratnamani Metals & Tubes Limited has a market capitalization of ₹246b, and paid its CEO total annual compensation worth ₹248m over the year to March 2024. That's a fairly small increase of 4.1% over the previous year. While we always look at total compensation first, our analysis shows that the salary component is less, at ₹23m.

On comparing similar companies from the Indian Metals and Mining industry with market caps ranging from ₹168b to ₹537b, we found that the median CEO total compensation was ₹28m. Accordingly, our analysis reveals that Ratnamani Metals & Tubes Limited pays Prakash Sanghvi north of the industry median. Furthermore, Prakash Sanghvi directly owns ₹56b worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	₹23m	₹22m	9%
Other	₹225m	₹216m	91%
Total Compensation	₹248m	₹238m	100%

On an industry level, roughly 100% of total compensation represents salary and 0.03817986% is other remuneration. In Ratnamani Metals & Tubes' case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at Ratnamani Metals & Tubes Limited's Growth Numbers

Ratnamani Metals & Tubes Limited has seen its earnings per share (EPS) increase by 29% a year over the past three years. In the last year, its revenue is up 8.5%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Ratnamani Metals & Tubes Limited Been A Good Investment?

Most shareholders would probably be pleased with Ratnamani Metals & Tubes Limited for providing a total return of 158% over three years. 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.

To Conclude...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus 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.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 1 warning sign for Ratnamani Metals & Tubes 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.