It's Unlikely That Airan Limited's (NSE:AIRAN) CEO Will See A Huge Pay Rise This Year

CEO Sandeepkumar Agrawal has done a decent job of delivering relatively good performance at Airan Limited (NSE:AIRAN) 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 24 September 2022. However, some shareholders will still be cautious of paying the CEO excessively.

See our latest analysis for Airan

How Does Total Compensation For Sandeepkumar Agrawal Compare With Other Companies In The Industry?

At the time of writing, our data shows that Airan Limited has a market capitalization of ₹2.3b, and reported total annual CEO compensation of ₹4.0m for the year to March 2022. We note that's an increase of 25% above last year. It is worth noting that the CEO compensation consists entirely of the salary, worth ₹4.0m.

On comparing similar-sized companies in the industry with market capitalizations below ₹16b, we found that the median total CEO compensation was ₹2.2m. Accordingly, our analysis reveals that Airan Limited pays Sandeepkumar Agrawal north of the industry median. Furthermore, Sandeepkumar Agrawal directly owns ₹280m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2022	2021	Proportion (2022)
Salary	₹4.0m	₹3.2m	100%
Other	-	-	-
Total Compensation	₹4.0m	₹3.2m	100%

Speaking on an industry level, nearly 98% of total compensation represents salary, while the remainder of 2% is other remuneration. On a company level, Airan prefers to reward its CEO through a salary, opting not to pay Sandeepkumar Agrawal 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 Airan Limited's Growth Numbers

Airan Limited has seen its earnings per share (EPS) increase by 13% a year over the past three years. In the last year, its revenue is up 18%.

Shareholders would be glad to know that the company has improved itself over the last few years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Airan Limited Been A Good Investment?

Boasting a total shareholder return of 33% over three years, Airan 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.

To Conclude...

Airan 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.

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 2 warning signs for Airan that you should be aware of before investing.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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.