Shareholders May Not Be So Generous With Arvind SmartSpaces Limited's (NSE:ARVSMART) CEO Compensation And Here's Why

Key Insights

• Arvind SmartSpaces to hold its Annual General Meeting on 25th of July
• Salary of ₹34.8m is part of CEO Kamal Sham Singal's total remuneration
• The overall pay is 185% above the industry average
• Over the past three years, Arvind SmartSpaces' EPS grew by 55% and over the past three years, the total shareholder return was 443%

CEO Kamal Sham Singal has done a decent job of delivering relatively good performance at Arvind SmartSpaces Limited (NSE:ARVSMART) recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 25th of July. However, some shareholders will still be cautious of paying the CEO excessively.

See our latest analysis for Arvind SmartSpaces

How Does Total Compensation For Kamal Sham Singal Compare With Other Companies In The Industry?

According to our data, Arvind SmartSpaces Limited has a market capitalization of ₹32b, and paid its CEO total annual compensation worth ₹44m over the year to March 2024. That's a fairly small increase of 5.4% over the previous year. Notably, the salary which is ₹34.8m, represents most of the total compensation being paid.

For comparison, other companies in the Indian Real Estate industry with market capitalizations ranging between ₹17b and ₹67b had a median total CEO compensation of ₹15m. Hence, we can conclude that Kamal Sham Singal is remunerated higher than the industry median.

Component	2024	2023	Proportion (2024)
Salary	₹35m	₹36m	79%
Other	₹9.2m	₹6.3m	21%
Total Compensation	₹44m	₹42m	100%

On an industry level, it's fascinating to see that all of total compensation represents salary and non-salary benefits do not factor into the equation at all. Arvind SmartSpaces pays a modest slice of remuneration through salary, as compared to the broader industry. 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.

Arvind SmartSpaces Limited's Growth

Over the past three years, Arvind SmartSpaces Limited has seen its earnings per share (EPS) grow by 55% per year. It achieved revenue growth of 33% 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. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Arvind SmartSpaces Limited Been A Good Investment?

We think that the total shareholder return of 443%, over three years, would leave most Arvind SmartSpaces Limited shareholders smiling. 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. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 2 warning signs for Arvind SmartSpaces that investors should think about before committing capital to this stock.

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