We believe some shareholders may be reluctant to increase the compensation of the CEO of Snowman Logistics Limited (NSE:SNOWMAN)

Under the leadership of CEO Sunil Nair, Snowman Logistics Limited (NSE: SNOWMAN) has performed relatively well recently. In light of this performance, CEO compensation is unlikely to be the primary concern of shareholders at their September 20, 2022 AGM. However, some shareholders may still want to keep CEO compensation within reasonable limits.

See our latest analysis for Snowman Logistics

Snowman Logistics Limited CEO Compensation Comparison with Industry

According to our data, Snowman Logistics Limited has a market capitalization of ₹6.3 billion and paid its CEO a total annual compensation of ₹13 million in the year to March 2017. We note that it is This is a 32% increase over last year. Notably, the salary which is ₹12.6 million accounts for the bulk of the total compensation paid.

Comparing similarly sized companies in the industry with market caps below ₹16 billion, we found that the median CEO total compensation was ₹4.6 million. Therefore, we can conclude that Sunil Nair is paid better than the industry median.

Making up 2017 2018 Share (2017)
Salary ₹13m ₹9.5 million 97%
Other ₹400,000 ₹300,000 3%
The total compensation ₹13m ₹9.8 million 100%

Speaking at the industry level, nearly 97% of total compensation is salary, while the remaining 3% is other compensation. Investors will find it attractive that Snowman Logistics pays the bulk of its rewards through a traditional salary, instead of non-salary benefits. If salary dominates total compensation, this suggests that CEO compensation leans less towards the variable component, which is usually tied to performance.

NSEI: SNOWMAN CEO Compensation September 14, 2022

Growth of Snowman Logistics Limited

Earnings per share (EPS) for Snowman Logistics Limited has grown 90% annually over the past three years. Its turnover is up 24% compared to last year.

This demonstrates that the company has recently improved and is good news for shareholders. It’s really positive to see this kind of revenue growth in a single year. This suggests a healthy and growing business. While we don’t have an analyst forecast for the company, shareholders may wish to review this detailed historical chart of earnings, revenue and cash flow.

Was Snowman Logistics Limited a good investment?

Most shareholders would probably be delighted that Snowman Logistics Limited is offering a 37% total return over three years. So they might not be worried at all if the CEO were to be paid more than is normal for companies of the same size.

To conclude…

Sunil receives almost all of his compensation in the form of salary. Given that the company’s overall performance has been reasonable, the CEO’s compensation policy may not be the focus of shareholders’ concerns at the next general meeting. However, if the board proposes to increase compensation, some shareholders might have questions given that the CEO is already better paid than the industry.

We can learn a lot about a company by studying its CEO compensation trends, as well as looking at other aspects of the company. We did our research and identified 3 warning signs (and 1 which is a little worrying) in Snowman Logistics that we think you should know about.

Arguably, the quality of the company is far more important than CEO compensation levels. So watch this free list of attractive companies that have a high return on equity and low debt.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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