Shareholders May Be More Conservative With Astra Microwave Products Limited's (NSE:ASTRAMICRO) CEO Compensation For Now

Key Insights

• Astra Microwave Products to hold its Annual General Meeting on 30th of August
• Salary of ₹7.17m is part of CEO Maram Reddy's total remuneration
• The overall pay is 71% above the industry average
• Astra Microwave Products' EPS grew by 42% over the past three years while total shareholder return over the past three years was 482%

Performance at Astra Microwave Products Limited (NSE:ASTRAMICRO) has been reasonably good and CEO Maram Reddy has done a decent job of steering the company in the right direction. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 30th of August. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

See our latest analysis for Astra Microwave Products

How Does Total Compensation For Maram Reddy Compare With Other Companies In The Industry?

At the time of writing, our data shows that Astra Microwave Products Limited has a market capitalization of ₹84b, and reported total annual CEO compensation of ₹24m for the year to March 2024. We note that's an increase of 44% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at ₹7.2m.

For comparison, other companies in the India Communications industry with market capitalizations ranging between ₹34b and ₹134b had a median total CEO compensation of ₹14m. Accordingly, our analysis reveals that Astra Microwave Products Limited pays Maram Reddy north of the industry median. Furthermore, Maram Reddy directly owns ₹56m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	₹7.2m	₹5.6m	30%
Other	₹16m	₹11m	70%
Total Compensation	₹24m	₹16m	100%

Talking in terms of the industry, salary represented approximately 84% of total compensation out of all the companies we analyzed, while other remuneration made up 16% of the pie. In Astra Microwave Products' case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Astra Microwave Products Limited's Growth

Astra Microwave Products Limited has seen its earnings per share (EPS) increase by 42% a year over the past three years. It achieved revenue growth of 18% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. 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 Astra Microwave Products Limited Been A Good Investment?

Boasting a total shareholder return of 482% over three years, Astra Microwave Products 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 up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Astra Microwave Products.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.