It Looks Like The CEO Of Solar Industries India Limited (NSE:SOLARINDS) May Be Underpaid Compared To Peers

By
Simply Wall St
Published
August 24, 2021
NSEI:SOLARINDS
Source: Shutterstock

The solid performance at Solar Industries India Limited (NSE:SOLARINDS) has been impressive and shareholders will probably be pleased to know that CEO Manish Nuwal has delivered. This would be kept in mind at the upcoming AGM on 31 August 2021 which will be a chance for them to hear the board review the financial results, discuss future company strategy and vote on resolutions such as executive remuneration and other matters. Here we will show why we think CEO compensation is appropriate and discuss the case for a pay rise.

View our latest analysis for Solar Industries India

Comparing Solar Industries India Limited's CEO Compensation With the industry

Our data indicates that Solar Industries India Limited has a market capitalization of ₹155b, and total annual CEO compensation was reported as ₹28m for the year to March 2021. There was no change in the compensation compared to last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at ₹12m.

On examining similar-sized companies in the industry with market capitalizations between ₹74b and ₹237b, we discovered that the median CEO total compensation of that group was ₹50m. This suggests that Manish Nuwal is paid below the industry median. Moreover, Manish Nuwal also holds ₹43b worth of Solar Industries India stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component20212020Proportion (2021)
Salary ₹12m ₹12m 43%
Other ₹16m ₹16m 57%
Total Compensation₹28m ₹28m100%

Speaking on an industry level, nearly 89% of total compensation represents salary, while the remainder of 11% is other remuneration. It's interesting to note that Solar Industries India allocates a smaller portion of compensation to salary 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.

ceo-compensation
NSEI:SOLARINDS CEO Compensation August 25th 2021

Solar Industries India Limited's Growth

Solar Industries India Limited has seen its earnings per share (EPS) increase by 12% a year over the past three years. In the last year, its revenue is up 35%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. 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 Solar Industries India Limited Been A Good Investment?

Boasting a total shareholder return of 44% over three years, Solar Industries India Limited has done well by shareholders. 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.

In Summary...

Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 1 warning sign for Solar Industries India 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.

If you’re looking to trade Solar Industries India, open an account with the lowest-cost* platform trusted by professionals, Interactive Brokers. Their clients from over 200 countries and territories trade stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted


Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.

Make Confident Investment Decisions

Simply Wall St's Editorial Team provides unbiased, factual reporting on global stocks using in-depth fundamental analysis.
Find out more about our editorial guidelines and team.