Shareholders May Be More Conservative With Jullundur Motor Agency (Delhi) Limited's (NSE:JMA) CEO Compensation For Now

Key Insights

• Jullundur Motor Agency (Delhi)'s Annual General Meeting to take place on 29th of August
• Salary of ₹6.07m is part of CEO Varoon Malik's total remuneration
• Total compensation is 1,019% above industry average
• Jullundur Motor Agency (Delhi)'s EPS grew by 8.5% over the past three years while total shareholder return over the past three years was 99%

Under the guidance of CEO Varoon Malik, Jullundur Motor Agency (Delhi) Limited (NSE:JMA) has performed reasonably well recently. 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 29th of August. However, some shareholders will still be cautious of paying the CEO excessively.

Check out our latest analysis for Jullundur Motor Agency (Delhi)

How Does Total Compensation For Varoon Malik Compare With Other Companies In The Industry?

Our data indicates that Jullundur Motor Agency (Delhi) Limited has a market capitalization of ₹2.5b, and total annual CEO compensation was reported as ₹11m for the year to March 2024. That's a notable increase of 11% on last year. In particular, the salary of ₹6.07m, makes up a fairly large portion of the total compensation being paid to the CEO.

In comparison with other companies in the India Retail Distributors industry with market capitalizations under ₹17b, the reported median total CEO compensation was ₹995k. Accordingly, our analysis reveals that Jullundur Motor Agency (Delhi) Limited pays Varoon Malik north of the industry median. Furthermore, Varoon Malik directly owns ₹6.7m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	₹6.1m	₹5.6m	54%
Other	₹5.1m	₹4.4m	46%
Total Compensation	₹11m	₹10m	100%

Speaking on an industry level, all of total compensation represents salary, while non-salary remuneration is completely ignored. It's interesting to note that Jullundur Motor Agency (Delhi) allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Jullundur Motor Agency (Delhi) Limited's Growth

Jullundur Motor Agency (Delhi) Limited's earnings per share (EPS) grew 8.5% per year over the last three years. Its revenue is up 7.8% over the last year.

We're not particularly impressed by the revenue growth, but it is good to see modest EPS growth. Considering these factors we'd say performance has been pretty decent, though not amazing. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Jullundur Motor Agency (Delhi) Limited Been A Good Investment?

We think that the total shareholder return of 99%, over three years, would leave most Jullundur Motor Agency (Delhi) 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 CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 2 warning signs for Jullundur Motor Agency (Delhi) that investors should be aware of in a dynamic business environment.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.