This Is The Reason Why We Think Sirca Paints India Limited's (NSE:SIRCA) CEO Might Be Underpaid

Key Insights

• Sirca Paints India will host its Annual General Meeting on 29th of August
• Salary of ₹12.0m is part of CEO Sanjay Agarwal's total remuneration
• The overall pay is 49% below the industry average
• Sirca Paints India's total shareholder return over the past three years was 112% while its EPS grew by 35% over the past three years

The solid performance at Sirca Paints India Limited (NSE:SIRCA) has been impressive and shareholders will probably be pleased to know that CEO Sanjay Agarwal has delivered. At the upcoming AGM on 29th of August, they would be interested to hear about the company strategy going forward and get a chance to cast their votes on resolutions such as executive remuneration and other company matters. We think the CEO has done a pretty decent job and probably deserves a well-earned pay rise.

Check out our latest analysis for Sirca Paints India

Comparing Sirca Paints India Limited's CEO Compensation With The Industry

Our data indicates that Sirca Paints India Limited has a market capitalization of ₹19b, and total annual CEO compensation was reported as ₹13m for the year to March 2024. That's a notable increase of 14% on last year. Notably, the salary which is ₹12.0m, represents most of the total compensation being paid.

In comparison with other companies in the India Retail Distributors industry with market capitalizations ranging from ₹8.4b to ₹34b, the reported median CEO total compensation was ₹26m. Accordingly, Sirca Paints India pays its CEO under the industry median. Furthermore, Sanjay Agarwal directly owns ₹6.1b worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	₹12m	₹11m	90%
Other	₹1.3m	₹864k	10%
Total Compensation	₹13m	₹12m	100%

Speaking on an industry level, all of total compensation represents salary, while non-salary remuneration is completely ignored. Our data reveals that Sirca Paints India allocates salary more or less in line with the wider market. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Sirca Paints India Limited's Growth Numbers

Sirca Paints India Limited has seen its earnings per share (EPS) increase by 35% a year over the past three years. It achieved revenue growth of 14% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. 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 Sirca Paints India Limited Been A Good Investment?

We think that the total shareholder return of 112%, over three years, would leave most Sirca Paints India Limited shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed 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.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 1 warning sign for Sirca Paints India 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.