It Looks Like Shareholders Would Probably Approve Vaswani Industries Limited's (NSE:VASWANI) CEO Compensation Package

The performance at Vaswani Industries Limited (NSE:VASWANI) has been quite strong recently and CEO Yashwant Vaswani has played a role in it. Shareholders will have this at the front of their minds in the upcoming AGM on 29 November 2022. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. In light of the great performance, we discuss the case why we think CEO compensation is not excessive.

Check out the opportunities and risks within the IN Metals and Mining industry.

Comparing Vaswani Industries Limited's CEO Compensation With The Industry

According to our data, Vaswani Industries Limited has a market capitalization of ₹608m, and paid its CEO total annual compensation worth ₹4.2m over the year to March 2022. That's a notable increase of 86% on last year. Notably, the salary of ₹4.2m is the entirety of the CEO compensation.

On comparing similar-sized companies in the industry with market capitalizations below ₹16b, we found that the median total CEO compensation was ₹4.2m. So it looks like Vaswani Industries compensates Yashwant Vaswani in line with the median for the industry. Moreover, Yashwant Vaswani also holds ₹59m worth of Vaswani Industries 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	₹4.2m	₹1.8m	100%
Other	-	₹480k	-
Total Compensation	₹4.2m	₹2.3m	100%

Speaking on an industry level, nearly 100% of total compensation represents salary, while the remainder of 0.06755% is other remuneration. Speaking on a company level, Vaswani Industries prefers to tread along a traditional path, disbursing all compensation through a salary. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Vaswani Industries Limited's Growth

Vaswani Industries Limited's earnings per share (EPS) grew 57% per year over the last three years. Its revenue is up 7.6% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. 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 Vaswani Industries Limited Been A Good Investment?

We think that the total shareholder return of 320%, over three years, would leave most Vaswani Industries 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.

In Summary...

Vaswani 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. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We did our research and identified 2 warning signs (and 1 which shouldn't be ignored) in Vaswani Industries we think you should know about.

Switching gears from Vaswani 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.