Shareholders Will Probably Hold Off On Increasing India Motor Parts & Accessories Limited's (NSE:IMPAL) CEO Compensation For The Time Being

Key Insights

• India Motor Parts & Accessories to hold its Annual General Meeting on 24th of July
• Total pay for CEO Narayanan Krishnan includes ₹10.2m salary
• The total compensation is 127% higher than the average for the industry
• Over the past three years, India Motor Parts & Accessories' EPS grew by 12% and over the past three years, the total shareholder return was 62%

Performance at India Motor Parts & Accessories Limited (NSE:IMPAL) has been reasonably good and CEO Narayanan Krishnan has done a decent job of steering the company in the right direction. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 24th of July. However, some shareholders will still be cautious of paying the CEO excessively.

See our latest analysis for India Motor Parts & Accessories

Comparing India Motor Parts & Accessories Limited's CEO Compensation With The Industry

According to our data, India Motor Parts & Accessories Limited has a market capitalization of ₹14b, and paid its CEO total annual compensation worth ₹26m over the year to March 2024. That is, the compensation was roughly the same as last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at ₹10m.

For comparison, other companies in the India Retail Distributors industry with market capitalizations ranging between ₹8.4b and ₹33b had a median total CEO compensation of ₹12m. Accordingly, our analysis reveals that India Motor Parts & Accessories Limited pays Narayanan Krishnan north of the industry median. What's more, Narayanan Krishnan holds ₹46m 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	₹10m	₹10.0m	39%
Other	₹16m	₹16m	61%
Total Compensation	₹26m	₹26m	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. India Motor Parts & Accessories pays a modest slice of remuneration through salary, as compared to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at India Motor Parts & Accessories Limited's Growth Numbers

Over the past three years, India Motor Parts & Accessories Limited has seen its earnings per share (EPS) grow by 12% per year. Its revenue is up 1.7% 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 India Motor Parts & Accessories Limited Been A Good Investment?

We think that the total shareholder return of 62%, over three years, would leave most India Motor Parts & Accessories Limited shareholders smiling. 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 up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is 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. We did our research and spotted 1 warning sign for India Motor Parts & Accessories that investors should look into moving forward.

Switching gears from India Motor Parts & Accessories, 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.

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