The Compensation For Tembo Global Industries Limited's (NSE:TEMBO) CEO Looks Deserved And Here's Why

Key Insights

• Tembo Global Industries will host its Annual General Meeting on 22nd of December
• Total pay for CEO Sanjay Patel includes ₹4.20m salary
• Total compensation is similar to the industry average
• Tembo Global Industries' EPS grew by 42% over the past three years while total shareholder return over the past three years was 207%

The performance at Tembo Global Industries Limited (NSE:TEMBO) has been quite strong recently and CEO Sanjay Patel has played a role in it. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 22nd of December. The focus will probably be on the future company strategy as shareholders cast their votes on resolutions such as executive remuneration and other matters. In light of the great performance, we discuss the case why we think CEO compensation is not excessive.

Check out our latest analysis for Tembo Global Industries

How Does Total Compensation For Sanjay Patel Compare With Other Companies In The Industry?

According to our data, Tembo Global Industries Limited has a market capitalization of ₹3.2b, and paid its CEO total annual compensation worth ₹4.2m over the year to March 2023. This was the same as last year. It is worth noting that the CEO compensation consists entirely of the salary, worth ₹4.2m.

In comparison with other companies in the Indian Metals and Mining industry with market capitalizations under ₹17b, the reported median total CEO compensation was ₹3.8m. This suggests that Tembo Global Industries remunerates its CEO largely in line with the industry average. Moreover, Sanjay Patel also holds ₹586m worth of Tembo Global Industries 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	₹4.2m	₹4.2m	100%
Other	-	-	-
Total Compensation	₹4.2m	₹4.2m	100%

On an industry level, roughly 100% of total compensation represents salary and 0.1797% is other remuneration. On a company level, Tembo Global Industries prefers to reward its CEO through a salary, opting not to pay Sanjay Patel through non-salary benefits. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Tembo Global Industries Limited's Growth

Over the past three years, Tembo Global Industries Limited has seen its earnings per share (EPS) grow by 42% per year. Its revenue is up 33% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Tembo Global Industries Limited Been A Good Investment?

Most shareholders would probably be pleased with Tembo Global Industries Limited for providing a total return of 207% over three years. 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.

To Conclude...

Tembo Global Industries rewards its CEO solely through a salary, ignoring non-salary benefits completely. Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at 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 pay is simply one of the many factors that need to be considered while examining business performance. We identified 4 warning signs for Tembo Global Industries (1 is a bit concerning!) that you should be aware of before investing here.

Switching gears from Tembo Global Industries, 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.