We Think The Compensation For Shyam Metalics and Energy Limited's (NSE:SHYAMMETL) CEO Looks About Right

Key Insights

• Shyam Metalics and Energy will host its Annual General Meeting on 26th of August
• Salary of ₹24.0m is part of CEO Brij Agarwal's total remuneration
• Total compensation is similar to the industry average
• Shyam Metalics and Energy's total shareholder return over the past three years was 227% while its EPS was down 20% over the past three years

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Performance at Shyam Metalics and Energy Limited (NSE:SHYAMMETL) has been reasonably good and CEO Brij Agarwal has done a decent job of steering the company in the right direction. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 26th of August. Here is our take on why we think the CEO compensation looks appropriate.

View our latest analysis for Shyam Metalics and Energy

Comparing Shyam Metalics and Energy Limited's CEO Compensation With The Industry

Our data indicates that Shyam Metalics and Energy Limited has a market capitalization of ₹264b, and total annual CEO compensation was reported as ₹24m for the year to March 2025. This was the same as last year. It is worth noting that the CEO compensation consists entirely of the salary, worth ₹24m.

In comparison with other companies in the Indian Metals and Mining industry with market capitalizations ranging from ₹174b to ₹557b, the reported median CEO total compensation was ₹25m. From this we gather that Brij Agarwal is paid around the median for CEOs in the industry. What's more, Brij Agarwal holds ₹25b worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, roughly 100% of total compensation represents salary and 0.12994162% is other remuneration. On a company level, Shyam Metalics and Energy prefers to reward its CEO through a salary, opting not to pay Brij Agarwal through non-salary benefits. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Shyam Metalics and Energy Limited's Growth

Over the last three years, Shyam Metalics and Energy Limited has shrunk its earnings per share by 20% per year. Its revenue is up 18% over the last year.

The decrease in EPS could be a concern for some investors. But on the other hand, revenue growth is strong, suggesting a brighter future. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. 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 Shyam Metalics and Energy Limited Been A Good Investment?

We think that the total shareholder return of 227%, over three years, would leave most Shyam Metalics and Energy Limited shareholders smiling. 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...

Shyam Metalics and Energy pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. Some shareholders will be pleased by the relatively good results, however, the results could still be improved. Despite robust revenue growth, until EPS growth improves, shareholders may be hesitant to increase CEO pay by too much.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 1 warning sign for Shyam Metalics and Energy that you should be aware of before investing.

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.