We Take A Look At Whether Anant Raj Limited's (NSE:ANANTRAJ) CEO May Be Underpaid

Key Insights

• Anant Raj will host its Annual General Meeting on 20th of July
• Total pay for CEO Aman Sarin includes ₹10.8m salary
• Total compensation is 64% below industry average
• Over the past three years, Anant Raj's EPS grew by 162% and over the past three years, the total shareholder return was 609%

The impressive results at Anant Raj Limited (NSE:ANANTRAJ) recently will be great news for shareholders. At the upcoming AGM on 20th of July, 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. Let's take a look at why we think the CEO has done a good job and we'll present the case for a bump in pay.

Check out our latest analysis for Anant Raj

How Does Total Compensation For Aman Sarin Compare With Other Companies In The Industry?

Our data indicates that Anant Raj Limited has a market capitalization of ₹170b, and total annual CEO compensation was reported as ₹12m for the year to March 2024. There was no change in the compensation compared to last year. Notably, the salary which is ₹10.8m, represents most of the total compensation being paid.

On comparing similar companies from the Indian Real Estate industry with market caps ranging from ₹84b to ₹267b, we found that the median CEO total compensation was ₹32m. In other words, Anant Raj pays its CEO lower than the industry median. What's more, Aman Sarin holds ₹127m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2024	2023	Proportion (2024)
Salary	₹11m	₹11m	94%
Other	₹720k	₹720k	6%
Total Compensation	₹12m	₹12m	100%

Speaking on an industry level, all of total compensation represents salary, while non-salary remuneration is completely ignored. Our data reveals that Anant Raj allocates salary more or less in line with the wider market. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

Anant Raj Limited's Growth

Over the past three years, Anant Raj Limited has seen its earnings per share (EPS) grow by 162% per year. Its revenue is up 55% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Anant Raj Limited Been A Good Investment?

Most shareholders would probably be pleased with Anant Raj Limited for providing a total return of 609% 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.

To Conclude...

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.

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 1 warning sign for Anant Raj that you should be aware of before investing.

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.

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