We Take A Look At Whether Tata Metaliks Limited's (NSE:TATAMETALI) CEO May Be Underpaid

The impressive results at Tata Metaliks Limited (NSE:TATAMETALI) recently will be great news for shareholders. At the upcoming AGM on 02 August 2021, they will get a chance to hear the board review the company results, discuss future strategy and cast their vote on any resolutions such as executive remuneration. Here we will show why we think CEO compensation is appropriate and discuss the case for a pay rise.

View our latest analysis for Tata Metaliks

Comparing Tata Metaliks Limited's CEO Compensation With the industry

According to our data, Tata Metaliks Limited has a market capitalization of ₹40b, and paid its CEO total annual compensation worth ₹16m over the year to March 2021. That's mostly flat as compared to the prior year's compensation. We think total compensation is more important but our data shows that the CEO salary is lower, at ₹3.8m.

In comparison with other companies in the industry with market capitalizations ranging from ₹15b to ₹60b, the reported median CEO total compensation was ₹27m. That is to say, Sandeep Kumar is paid under the industry median.

Component	2021	2020	Proportion (2021)
Salary	₹3.8m	₹3.8m	23%
Other	₹13m	₹12m	77%
Total Compensation	₹16m	₹16m	100%

On an industry level, roughly 100% of total compensation represents salary and 0.45925% is other remuneration. It's interesting to note that Tata Metaliks 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.

Tata Metaliks Limited's Growth

Tata Metaliks Limited's earnings per share (EPS) grew 19% per year over the last three years. It achieved revenue growth of 31% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. 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 Tata Metaliks Limited Been A Good Investment?

Most shareholders would probably be pleased with Tata Metaliks Limited for providing a total return of 99% over three years. 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.

In Summary...

Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

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 2 warning signs for Tata Metaliks that investors should think about before committing capital to this stock.

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 decide to trade Tata Metaliks, use the lowest-cost* platform that is rated #1 Overall by Barron’s, Interactive Brokers. Trade stocks, options, futures, forex, bonds and funds on 135 markets, all from a single integrated account. Promoted

This article by Simply Wall St is general in nature. 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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.