Shareholders May Be More Conservative With Shivalik Bimetal Controls Limited's (NSE:SBCL) CEO Compensation For Now

Key Insights

• Shivalik Bimetal Controls' Annual General Meeting to take place on 26th of September
• CEO Narinder Ghumman's total compensation includes salary of ₹29.7m
• Total compensation is 65% above industry average
• Over the past three years, Shivalik Bimetal Controls' EPS grew by 32% and over the past three years, the total shareholder return was 208%

Under the guidance of CEO Narinder Ghumman, Shivalik Bimetal Controls Limited (NSE:SBCL) 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 26th of September. However, some shareholders will still be cautious of paying the CEO excessively.

View our latest analysis for Shivalik Bimetal Controls

Comparing Shivalik Bimetal Controls Limited's CEO Compensation With The Industry

According to our data, Shivalik Bimetal Controls Limited has a market capitalization of ₹33b, and paid its CEO total annual compensation worth ₹32m 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 ₹29.7m constitutes the majority of total compensation received by the CEO.

On comparing similar companies from the Indian Metals and Mining industry with market caps ranging from ₹17b to ₹67b, we found that the median CEO total compensation was ₹19m. This suggests that Narinder Ghumman is paid more than the median for the industry. What's more, Narinder Ghumman holds ₹2.6b 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	₹30m	₹30m	92%
Other	₹2.5m	₹2.4m	8%
Total Compensation	₹32m	₹32m	100%

Speaking on an industry level, nearly 100% of total compensation represents salary, while the remainder of 0.12587548% is other remuneration. Although there is a difference in how total compensation is set, Shivalik Bimetal Controls more or less reflects the market in terms of setting the salary. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

Shivalik Bimetal Controls Limited's Growth

Shivalik Bimetal Controls Limited has seen its earnings per share (EPS) increase by 32% a year over the past three years. Its revenue is up 4.3% over the last year.

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. 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 Shivalik Bimetal Controls Limited Been A Good Investment?

We think that the total shareholder return of 208%, over three years, would leave most Shivalik Bimetal Controls Limited shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

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. 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. We did our research and spotted 1 warning sign for Shivalik Bimetal Controls 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.