Increases to Sunflag Iron and Steel Company Limited's (NSE:SUNFLAG) CEO Compensation Might Cool off for now

Performance at Sunflag Iron and Steel Company Limited (NSE:SUNFLAG) has been reasonably good and CEO Pranav Bhardwaj 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 28 September 2022. However, some shareholders may still want to keep CEO compensation within reason.

See our latest analysis for Sunflag Iron and Steel

How Does Total Compensation For Pranav Bhardwaj Compare With Other Companies In The Industry?

At the time of writing, our data shows that Sunflag Iron and Steel Company Limited has a market capitalization of ₹16b, and reported total annual CEO compensation of ₹56m for the year to March 2022. That's a notable increase of 53% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at ₹22m.

For comparison, other companies in the same industry with market capitalizations ranging between ₹8.0b and ₹32b had a median total CEO compensation of ₹22m. This suggests that Pranav Bhardwaj is paid more than the median for the industry. Moreover, Pranav Bhardwaj also holds ₹143m worth of Sunflag Iron and Steel stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2022	2021	Proportion (2022)
Salary	₹22m	₹16m	39%
Other	₹34m	₹21m	61%
Total Compensation	₹56m	₹37m	100%

Speaking on an industry level, all of total compensation represents salary, while non-salary remuneration is completely ignored. It's interesting to note that Sunflag Iron and Steel allocates a smaller portion of compensation to salary 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.

Sunflag Iron and Steel Company Limited's Growth

Sunflag Iron and Steel Company Limited has seen its earnings per share (EPS) increase by 143% a year over the past three years. Its revenue is up 24% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Sunflag Iron and Steel Company Limited Been A Good Investment?

We think that the total shareholder return of 189%, over three years, would leave most Sunflag Iron and Steel Company Limited shareholders smiling. 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...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus 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.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 1 warning sign for Sunflag Iron and Steel 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.