This Is The Reason Why We Think Container Corporation of India Limited's (NSE:CONCOR) CEO Deserves A Bump Up To Their Compensation

Key Insights

• Container Corporation of India to hold its Annual General Meeting on 26th of September
• Salary of ₹7.89m is part of CEO Vennelakanti Rama's total remuneration
• Total compensation is 97% below industry average
• Container Corporation of India's EPS grew by 72% over the past three years while total shareholder return over the past three years was 107%

Shareholders will be pleased by the impressive results for Container Corporation of India Limited (NSE:CONCOR) recently and CEO Vennelakanti Rama has played a key role. At the upcoming AGM on 26th of September, 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. Here we will show why we think CEO compensation is appropriate and discuss the case for a pay rise.

Check out our latest analysis for Container Corporation of India

Comparing Container Corporation of India Limited's CEO Compensation With The Industry

At the time of writing, our data shows that Container Corporation of India Limited has a market capitalization of ₹448b, and reported total annual CEO compensation of ₹9.7m for the year to March 2023. We note that's an increase of 25% above last year. We note that the salary portion, which stands at ₹7.89m constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the India Transportation industry with market capitalizations ranging between ₹333b and ₹999b had a median total CEO compensation of ₹384m. That is to say, Vennelakanti Rama is paid under the industry median. Moreover, Vennelakanti Rama also holds ₹405k worth of Container Corporation of India stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2023	2022	Proportion (2023)
Salary	₹7.9m	₹6.3m	81%
Other	₹1.8m	₹1.4m	19%
Total Compensation	₹9.7m	₹7.7m	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. Container Corporation of India pays a modest slice of remuneration through salary, as compared to the broader industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Container Corporation of India Limited's Growth

Container Corporation of India Limited has seen its earnings per share (EPS) increase by 72% a year over the past three years. Its revenue is up 3.5% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. 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 Container Corporation of India Limited Been A Good Investment?

We think that the total shareholder return of 107%, over three years, would leave most Container Corporation of India Limited shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same 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 CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 1 warning sign for Container Corporation of India that investors should be aware of in a dynamic business environment.

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.