Should Shareholders Reconsider Steel Exchange India Limited's (NSE:STEELXIND) CEO Compensation Package?

Key Insights

• Steel Exchange India will host its Annual General Meeting on 29th of September
• Total pay for CEO Bandi Kumar includes ₹9.08m salary
• Total compensation is 140% above industry average
• Steel Exchange India's EPS declined by 41% over the past three years while total shareholder loss over the past three years was 15%

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Shareholders will probably not be too impressed with the underwhelming results at Steel Exchange India Limited (NSE:STEELXIND) recently. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 29th of September. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. From our analysis, we think CEO compensation may need a review in light of the recent performance.

See our latest analysis for Steel Exchange India

How Does Total Compensation For Bandi Kumar Compare With Other Companies In The Industry?

According to our data, Steel Exchange India Limited has a market capitalization of ₹13b, and paid its CEO total annual compensation worth ₹10m over the year to March 2025. This means that the compensation hasn't changed much from last year. We note that the salary portion, which stands at ₹9.08m constitutes the majority of total compensation received by the CEO.

On comparing similar-sized companies in the Indian Metals and Mining industry with market capitalizations below ₹18b, we found that the median total CEO compensation was ₹4.3m. This suggests that Bandi Kumar is paid more than the median for the industry. Furthermore, Bandi Kumar directly owns ₹67m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, it's fascinating to see that all of total compensation represents salary and non-salary benefits do not factor into the equation at all. In Steel Exchange India's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Steel Exchange India Limited's Growth Numbers

Over the last three years, Steel Exchange India Limited has shrunk its earnings per share by 41% per year. In the last year, its revenue is up 7.1%.

Overall this is not a very positive result for shareholders. The fairly low revenue growth fails to impress given that the EPS is down. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Steel Exchange India Limited Been A Good Investment?

Since shareholders would have lost about 15% over three years, some Steel Exchange India Limited investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

CEO compensation can have a massive impact on performance, but it's just one element. We've identified 1 warning sign for Steel Exchange India that investors should be aware of in a dynamic business environment.

Switching gears from Steel Exchange India, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.