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 10th of September
• Salary of ₹36.0m is part of CEO Shrikant Zaveri's total remuneration
• The total compensation is 172% higher than the average for the industry
• Over the past three years, Tribhovandas Bhimji Zaveri's EPS grew by 3.6% and over the past three years, the total shareholder return was 188%

Under the guidance of CEO Shrikant Zaveri, Tribhovandas Bhimji Zaveri Limited (NSE:TBZ) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 10th of September. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

Check out our latest analysis for Tribhovandas Bhimji Zaveri

How Does Total Compensation For Shrikant Zaveri Compare With Other Companies In The Industry?

At the time of writing, our data shows that Tribhovandas Bhimji Zaveri Limited has a market capitalization of ₹14b, and reported total annual CEO compensation of ₹36m for the year to March 2024. That's a notable increase of 50% on last year. Notably, the salary of ₹36m is the entirety of the CEO compensation.

For comparison, other companies in the Indian Specialty Retail industry with market capitalizations ranging between ₹8.4b and ₹34b had a median total CEO compensation of ₹13m. Hence, we can conclude that Shrikant Zaveri is remunerated higher than the industry median. Furthermore, Shrikant Zaveri directly owns ₹7.8b worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	₹36m	₹24m	100%
Other	-	-	-
Total Compensation	₹36m	₹24m	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. At the company level, Tribhovandas Bhimji Zaveri pays Shrikant Zaveri solely through a salary, preferring to go down a conventional route. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Tribhovandas Bhimji Zaveri Limited's Growth Numbers

Tribhovandas Bhimji Zaveri Limited's earnings per share (EPS) grew 3.6% per year over the last three years. Its revenue is down 2.5% over the previous year.

We generally like to see a little revenue growth, but the modest EPS growth gives us some relief. It's hard to reach a conclusion about business performance right now. This may be one to watch. 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 Tribhovandas Bhimji Zaveri Limited Been A Good Investment?

Most shareholders would probably be pleased with Tribhovandas Bhimji Zaveri Limited for providing a total return of 188% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar 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. 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.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We did our research and identified 3 warning signs (and 1 which is concerning) in Tribhovandas Bhimji Zaveri we think you should know about.

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.