We Think Some Shareholders May Hesitate To Increase Emami Realty Limited's (NSE:EMAMIREAL) CEO Compensation

Under the guidance of CEO Nitesh Gupta, Emami Realty Limited (NSE:EMAMIREAL) has performed reasonably well recently. As shareholders go into the upcoming AGM on 29 September 2022, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

View our latest analysis for Emami Realty

Comparing Emami Realty Limited's CEO Compensation With The Industry

According to our data, Emami Realty Limited has a market capitalization of ₹3.0b, and paid its CEO total annual compensation worth ₹20m over the year to March 2022. Notably, that's an increase of 28% over the year before. It is worth noting that the CEO compensation consists entirely of the salary, worth ₹20m.

For comparison, other companies in the industry with market capitalizations below ₹16b, reported a median total CEO compensation of ₹1.8m. Hence, we can conclude that Nitesh Gupta is remunerated higher than the industry median.

Component	2022	2021	Proportion (2022)
Salary	₹20m	₹15m	100%
Other	-	-	-
Total Compensation	₹20m	₹15m	100%

Talking in terms of the industry, salary represents all of total compensation among the companies we analyzed, while other remuneration is, interestingly, completely ignored. On a company level, Emami Realty prefers to reward its CEO through a salary, opting not to pay Nitesh Gupta through non-salary benefits. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Emami Realty Limited's Growth Numbers

Over the past three years, Emami Realty Limited has seen its earnings per share (EPS) grow by 67% per year. Its revenue is up 5.7% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see modest revenue growth, suggesting the underlying business is healthy. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Emami Realty Limited Been A Good Investment?

Most shareholders would probably be pleased with Emami Realty Limited for providing a total return of 56% 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.

In Summary...

Emami Realty pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. 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.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We did our research and identified 3 warning signs (and 1 which can't be ignored) in Emami Realty we think you should know about.

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.