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Shareholders May Be More Conservative With Shree Cement Limited's (NSE:SHREECEM) CEO Compensation For Now
CEO Prashant Bangur has done a decent job of delivering relatively good performance at Shree Cement Limited (NSE:SHREECEM) 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 09 August 2021. However, some shareholders may still want to keep CEO compensation within reason.
View our latest analysis for Shree Cement
Comparing Shree Cement Limited's CEO Compensation With the industry
At the time of writing, our data shows that Shree Cement Limited has a market capitalization of ₹1.1t, and reported total annual CEO compensation of ₹247m for the year to March 2021. That's a notable increase of 19% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at ₹51m.
On comparing similar companies in the industry with market capitalizations above ₹595b, we found that the median total CEO compensation was ₹27m. Hence, we can conclude that Prashant Bangur is remunerated higher than the industry median. Furthermore, Prashant Bangur directly owns ₹11b worth of shares in the company, implying that they are deeply invested in the company's success.
Component | 2021 | 2020 | Proportion (2021) |
Salary | ₹51m | ₹48m | 21% |
Other | ₹196m | ₹160m | 79% |
Total Compensation | ₹247m | ₹208m | 100% |
On an industry level, around 87% of total compensation represents salary and 13% is other remuneration. In Shree Cement's case, non-salary compensation represents a greater slice of total remuneration, 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.
A Look at Shree Cement Limited's Growth Numbers
Over the past three years, Shree Cement Limited has seen its earnings per share (EPS) grow by 17% per year. Its revenue is up 4.7% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. 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 Shree Cement Limited Been A Good Investment?
Most shareholders would probably be pleased with Shree Cement Limited for providing a total return of 69% over three years. 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.
To Conclude...
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. 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.
If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Shree Cement.
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This article by Simply Wall St is general in nature. 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.
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About NSEI:SHREECEM
Shree Cement
Engages in the manufacture and sale of cement and clinker in India and internationally.
Flawless balance sheet average dividend payer.