Savita Oil Technologies Limited's (NSE:SOTL) CEO Will Probably Have Their Compensation Approved By Shareholders

Key Insights

• Savita Oil Technologies' Annual General Meeting to take place on 29th of September
• Salary of ₹10.7m is part of CEO Gautam Mehra's total remuneration
• The total compensation is similar to the average for the industry
• Savita Oil Technologies' EPS grew by 36% over the past three years while total shareholder return over the past three years was 152%

The performance at Savita Oil Technologies Limited (NSE:SOTL) has been quite strong recently and CEO Gautam Mehra has played a role in it. Shareholders will have this at the front of their minds in the upcoming AGM on 29th of September. The focus will probably be on the future company strategy as shareholders cast their votes on resolutions such as executive remuneration and other matters. Here is our take on why we think CEO compensation is not extravagant.

See our latest analysis for Savita Oil Technologies

How Does Total Compensation For Gautam Mehra Compare With Other Companies In The Industry?

According to our data, Savita Oil Technologies Limited has a market capitalization of ₹23b, and paid its CEO total annual compensation worth ₹29m over the year to March 2023. Notably, that's a decrease of 51% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at ₹11m.

For comparison, other companies in the Indian Chemicals industry with market capitalizations ranging between ₹8.3b and ₹33b had a median total CEO compensation of ₹23m. So it looks like Savita Oil Technologies compensates Gautam Mehra in line with the median for the industry. Moreover, Gautam Mehra also holds ₹15b worth of Savita Oil Technologies stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2023	2022	Proportion (2023)
Salary	₹11m	₹9.8m	36%
Other	₹19m	₹50m	64%
Total Compensation	₹29m	₹60m	100%

On an industry level, roughly 86% of total compensation represents salary and 14% is other remuneration. Savita Oil Technologies sets aside a smaller share of compensation for salary, in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at Savita Oil Technologies Limited's Growth Numbers

Savita Oil Technologies Limited has seen its earnings per share (EPS) increase by 36% a year over the past three years. Its revenue is up 14% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Savita Oil Technologies Limited Been A Good Investment?

Boasting a total shareholder return of 152% over three years, Savita Oil Technologies 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.

In Summary...

The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them 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 2 warning signs for Savita Oil Technologies that investors should look into moving forward.

Important note: Savita Oil Technologies is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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.