Increases to Tribhovandas Bhimji Zaveri Limited's (NSE:TBZ) CEO Compensation Might Cool off for now

Key Insights

• Tribhovandas Bhimji Zaveri will host its Annual General Meeting on 13th of September
• Salary of ₹24.0m is part of CEO Shrikant Zaveri's total remuneration
• The overall pay is 563% above the industry average
• Tribhovandas Bhimji Zaveri's total shareholder return over the past three years was 258% while its EPS grew by 22% over the past three years

Performance at Tribhovandas Bhimji Zaveri Limited (NSE:TBZ) has been reasonably good and CEO Shrikant Zaveri 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 13th of September. However, some shareholders may still want to keep CEO compensation within reason.

Check out our latest analysis for Tribhovandas Bhimji Zaveri

Comparing Tribhovandas Bhimji Zaveri Limited's CEO Compensation With The Industry

At the time of writing, our data shows that Tribhovandas Bhimji Zaveri Limited has a market capitalization of ₹8.1b, and reported total annual CEO compensation of ₹24m for the year to March 2023. There was no change in the compensation compared to last year. Notably, the salary of ₹24m is the entirety of the CEO compensation.

For comparison, other companies in the Indian Specialty Retail industry with market capitalizations below ₹17b, reported a median total CEO compensation of ₹3.6m. Accordingly, our analysis reveals that Tribhovandas Bhimji Zaveri Limited pays Shrikant Zaveri north of the industry median. Furthermore, Shrikant Zaveri directly owns ₹4.5b worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2023	2022	Proportion (2023)
Salary	₹24m	₹24m	100%
Other	-	-	-
Total Compensation	₹24m	₹24m	100%

Speaking on an industry level, all of total compensation represents salary, while non-salary remuneration is completely ignored. On a company level, Tribhovandas Bhimji Zaveri prefers to reward its CEO through a salary, opting not to pay Shrikant Zaveri through non-salary benefits. 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.

A Look at Tribhovandas Bhimji Zaveri Limited's Growth Numbers

Tribhovandas Bhimji Zaveri Limited's earnings per share (EPS) grew 22% per year over the last three years. Its revenue is up 6.9% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Tribhovandas Bhimji Zaveri Limited Been A Good Investment?

Boasting a total shareholder return of 258% over three years, Tribhovandas Bhimji Zaveri Limited has done well by shareholders. 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.

In Summary...

Tribhovandas Bhimji Zaveri rewards its CEO solely through a salary, ignoring non-salary benefits completely. 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, 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.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. In our study, we found 3 warning signs for Tribhovandas Bhimji Zaveri you should be aware of, and 1 of them is a bit concerning.

Switching gears from Tribhovandas Bhimji Zaveri, 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.