Shareholders Will Probably Hold Off On Increasing The Sandesh Limited's (NSE:SANDESH) CEO Compensation For The Time Being

CEO Falgunbhai Patel has done a decent job of delivering relatively good performance at The Sandesh Limited (NSE:SANDESH) recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 30 September 2022. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

See our latest analysis for Sandesh

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

Our data indicates that The Sandesh Limited has a market capitalization of ₹5.7b, and total annual CEO compensation was reported as ₹52m for the year to March 2022. We note that's an increase of 31% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at ₹10m.

On comparing similar-sized companies in the industry with market capitalizations below ₹16b, we found that the median total CEO compensation was ₹10m. This suggests that Falgunbhai Patel is paid more than the median for the industry. Furthermore, Falgunbhai Patel directly owns ₹401m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2022	2021	Proportion (2022)
Salary	₹10m	₹1.3m	20%
Other	₹42m	₹38m	80%
Total Compensation	₹52m	₹39m	100%

On an industry level, roughly 100% of total compensation represents salary and 0.2491% is other remuneration. Sandesh sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at The Sandesh Limited's Growth Numbers

Over the past three years, The Sandesh Limited has seen its earnings per share (EPS) grow by 13% per year. It achieved revenue growth of 17% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and 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 The Sandesh Limited Been A Good Investment?

Most shareholders would probably be pleased with The Sandesh Limited for providing a total return of 33% 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...

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, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 1 warning sign for Sandesh that investors should be aware of in a dynamic business environment.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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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.