Increases to Sarda Energy & Minerals Limited's (NSE:SARDAEN) CEO Compensation Might Cool off for now

Key Insights

• Sarda Energy & Minerals will host its Annual General Meeting on 28th of September
• Salary of ₹18.9m is part of CEO Kamal Sarda's total remuneration
• The total compensation is 117% higher than the average for the industry
• Over the past three years, Sarda Energy & Minerals' EPS grew by 75% and over the past three years, the total shareholder return was 974%

Under the guidance of CEO Kamal Sarda, Sarda Energy & Minerals Limited (NSE:SARDAEN) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 28th of September. However, some shareholders will still be cautious of paying the CEO excessively.

See our latest analysis for Sarda Energy & Minerals

How Does Total Compensation For Kamal Sarda Compare With Other Companies In The Industry?

According to our data, Sarda Energy & Minerals Limited has a market capitalization of ₹75b, and paid its CEO total annual compensation worth ₹84m over the year to March 2023. This means that the compensation hasn't changed much from last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at ₹19m.

On examining similar-sized companies in the Indian Metals and Mining industry with market capitalizations between ₹33b and ₹133b, we discovered that the median CEO total compensation of that group was ₹39m. This suggests that Kamal Sarda is paid more than the median for the industry. What's more, Kamal Sarda holds ₹1.2b worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2023	2022	Proportion (2023)
Salary	₹19m	₹18m	22%
Other	₹66m	₹68m	78%
Total Compensation	₹84m	₹86m	100%

Talking in terms of the industry, salary represented approximately 100% of total compensation out of all the companies we analyzed, while other remuneration made up 0.0956% of the pie. It's interesting to note that Sarda Energy & Minerals allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Sarda Energy & Minerals Limited's Growth

Over the past three years, Sarda Energy & Minerals Limited has seen its earnings per share (EPS) grow by 75% per year. In the last year, its revenue is down 7.8%.

Shareholders would be glad to know that the company has improved itself over the last few years. While it would be good to see revenue growth, profits matter more in the end. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Sarda Energy & Minerals Limited Been A Good Investment?

Boasting a total shareholder return of 974% over three years, Sarda Energy & Minerals 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.

To Conclude...

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, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 1 warning sign for Sarda Energy & Minerals that investors should be aware of in a dynamic business environment.

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.