Increases to CEO Compensation Might Be Put On Hold For Now at Marathon Nextgen Realty Limited (NSE:MARATHON)

Under the guidance of CEO Chetan Shah, Marathon Nextgen Realty Limited (NSE:MARATHON) 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 Marathon Nextgen Realty

Comparing Marathon Nextgen Realty Limited's CEO Compensation With The Industry

According to our data, Marathon Nextgen Realty Limited has a market capitalization of ₹10b, and paid its CEO total annual compensation worth ₹7.5m over the year to March 2022. This was the same as last year. It is worth noting that the CEO compensation consists entirely of the salary, worth ₹7.5m.

On comparing similar-sized companies in the industry with market capitalizations below ₹16b, we found that the median total CEO compensation was ₹1.8m. This suggests that Chetan Shah is paid more than the median for the industry.

Component	2022	2021	Proportion (2022)
Salary	₹7.5m	₹7.5m	100%
Other	-	-	-
Total Compensation	₹7.5m	₹7.5m	100%

Speaking on an industry level, all of total compensation represents salary, while non-salary remuneration is completely ignored. At the company level, Marathon Nextgen Realty pays Chetan Shah solely through a salary, preferring to go down a conventional route. 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.

Marathon Nextgen Realty Limited's Growth

Marathon Nextgen Realty Limited's earnings per share (EPS) grew 16% per year over the last three years. Its revenue is up 102% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast 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 Marathon Nextgen Realty Limited Been A Good Investment?

Boasting a total shareholder return of 186% over three years, Marathon Nextgen Realty Limited has done well by shareholders. 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...

Marathon Nextgen 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. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 3 warning signs (and 2 which shouldn't be ignored) in Marathon Nextgen Realty we think you should know about.

Switching gears from Marathon Nextgen Realty, 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.

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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.