Increases to CEO Compensation Might Be Put On Hold For Now at Snowman Logistics Limited (NSE:SNOWMAN)

Key Insights

• Snowman Logistics' Annual General Meeting to take place on 19th of September
• Salary of ₹18.0m is part of CEO Sunil Nair's total remuneration
• The overall pay is 97% above the industry average
• Over the past three years, Snowman Logistics' EPS grew by 69% and over the past three years, the total shareholder return was 91%

Performance at Snowman Logistics Limited (NSE:SNOWMAN) has been reasonably good and CEO Sunil Nair has done a decent job of steering the company in the right direction. 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 19th of September. However, some shareholders may still want to keep CEO compensation within reason.

Check out our latest analysis for Snowman Logistics

Comparing Snowman Logistics Limited's CEO Compensation With The Industry

According to our data, Snowman Logistics Limited has a market capitalization of ₹14b, and paid its CEO total annual compensation worth ₹19m over the year to March 2024. We note that's an increase of 22% above last year. We note that the salary portion, which stands at ₹18.0m constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the Indian Logistics industry with market capitalizations ranging from ₹8.4b to ₹34b, the reported median CEO total compensation was ₹9.5m. Hence, we can conclude that Sunil Nair is remunerated higher than the industry median. Furthermore, Sunil Nair directly owns ₹1.9m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	₹18m	₹15m	97%
Other	₹600k	₹500k	3%
Total Compensation	₹19m	₹15m	100%

On an industry level, around 59% of total compensation represents salary and 41% is other remuneration. Snowman Logistics has gone down a largely traditional route, paying Sunil Nair a high salary, giving it preference over non-salary benefits. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Snowman Logistics Limited's Growth Numbers

Snowman Logistics Limited's earnings per share (EPS) grew 69% per year over the last three years. In the last year, its revenue is up 12%.

This demonstrates that the company has been improving recently and is good news for the shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. 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 Snowman Logistics Limited Been A Good Investment?

Most shareholders would probably be pleased with Snowman Logistics Limited for providing a total return of 91% 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...

Snowman Logistics pays its CEO a majority of compensation through a salary. The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed 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.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We identified 3 warning signs for Snowman Logistics (1 doesn't sit too well with us!) that you should be aware of before investing here.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.