We Take A Look At Why The Phoenix Mills Limited's (NSE:PHOENIXLTD) CEO Has Earned Their Pay Packet

Key Insights

• Phoenix Mills' Annual General Meeting to take place on 22nd of September
• Total pay for CEO Shishir Shrivastava includes ₹30.9m salary
• The total compensation is similar to the average for the industry
• Over the past three years, Phoenix Mills' EPS grew by 66% and over the past three years, the total shareholder return was 192%

We have been pretty impressed with the performance at The Phoenix Mills Limited (NSE:PHOENIXLTD) recently and CEO Shishir Shrivastava deserves a mention for their role in it. Shareholders will have this at the front of their minds in the upcoming AGM on 22nd of September. 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.

View our latest analysis for Phoenix Mills

How Does Total Compensation For Shishir Shrivastava Compare With Other Companies In The Industry?

According to our data, The Phoenix Mills Limited has a market capitalization of ₹330b, and paid its CEO total annual compensation worth ₹98m over the year to March 2023. We note that's an increase of 85% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at ₹31m.

On examining similar-sized companies in the Indian Real Estate industry with market capitalizations between ₹166b and ₹532b, we discovered that the median CEO total compensation of that group was ₹75m. This suggests that Phoenix Mills remunerates its CEO largely in line with the industry average. Furthermore, Shishir Shrivastava directly owns ₹165m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2023	2022	Proportion (2023)
Salary	₹31m	₹21m	31%
Other	₹67m	₹32m	69%
Total Compensation	₹98m	₹53m	100%

Speaking on an industry level, all of total compensation represents salary, while non-salary remuneration is completely ignored. In Phoenix Mills' case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at The Phoenix Mills Limited's Growth Numbers

The Phoenix Mills Limited's earnings per share (EPS) grew 66% per year over the last three years. It achieved revenue growth of 55% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. 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 The Phoenix Mills Limited Been A Good Investment?

Boasting a total shareholder return of 192% over three years, The Phoenix Mills Limited has done well by shareholders. 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.

In Summary...

Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 1 warning sign for Phoenix Mills that you should be aware of before investing.

Switching gears from Phoenix Mills, 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.

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

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.