This Is The Reason Why We Think Trent Limited's (NSE:TRENT) CEO Deserves A Bump Up To Their Compensation

Key Insights

• Trent to hold its Annual General Meeting on 12th of June
• Salary of ₹22.4m is part of CEO Venkatesalu Palaniswamy's total remuneration
• Total compensation is 93% below industry average
• Trent's total shareholder return over the past three years was 483% while its EPS grew by 95% over the past three years

The solid performance at Trent Limited (NSE:TRENT) has been impressive and shareholders will probably be pleased to know that CEO Venkatesalu Palaniswamy has delivered. At the upcoming AGM on 12th of June, they will get a chance to hear the board review the company results, discuss future strategy and cast their vote on any resolutions such as executive remuneration. Let's take a look at why we think the CEO has done a good job and we'll present the case for a bump in pay.

View our latest analysis for Trent

How Does Total Compensation For Venkatesalu Palaniswamy Compare With Other Companies In The Industry?

Our data indicates that Trent Limited has a market capitalization of ₹1.7t, and total annual CEO compensation was reported as ₹71m for the year to March 2024. We note that's an increase of 31% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at ₹22m.

On comparing similar companies in the Indian Specialty Retail industry with market capitalizations above ₹667b, we found that the median total CEO compensation was ₹1.1b. Accordingly, Trent pays its CEO under the industry median.

Component	2024	2023	Proportion (2024)
Salary	₹22m	₹18m	32%
Other	₹49m	₹36m	68%
Total Compensation	₹71m	₹54m	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 Trent allocates a smaller portion of compensation to salary in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Trent Limited's Growth

Trent Limited has seen its earnings per share (EPS) increase by 95% a year over the past three years. It achieved revenue growth of 50% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. 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 Trent Limited Been A Good Investment?

Boasting a total shareholder return of 483% over three years, Trent Limited has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 1 warning sign for Trent that you should be aware of before investing.

Important note: Trent is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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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.