Here's Why Automotive Axles Limited's (NSE:AUTOAXLES) CEO Compensation Is The Least Of Shareholders Concerns

Key Insights

• Automotive Axles will host its Annual General Meeting on 12th of August
• Salary of ₹18.3m is part of CEO Nagaraja Sadashiva Gargeshwari's total remuneration
• The overall pay is 34% below the industry average
• Automotive Axles' three-year loss to shareholders was 2.0% while its EPS grew by 28% over the past three years

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Shareholders may be wondering what CEO Nagaraja Sadashiva Gargeshwari plans to do to improve the less than great performance at Automotive Axles Limited (NSE:AUTOAXLES) recently. One way they can exercise their influence on management is through voting on resolutions, such as executive remuneration at the next AGM, coming up on 12th of August. Voting on executive pay could be a powerful way to influence management, as studies have shown that the right compensation incentives impact company performance. In our opinion, CEO compensation does not look excessive and we discuss why.

See our latest analysis for Automotive Axles

How Does Total Compensation For Nagaraja Sadashiva Gargeshwari Compare With Other Companies In The Industry?

According to our data, Automotive Axles Limited has a market capitalization of ₹28b, and paid its CEO total annual compensation worth ₹18m over the year to March 2025. That's mostly flat as compared to the prior year's compensation. Notably, the salary of ₹18m is the entirety of the CEO compensation.

For comparison, other companies in the Indian Auto Components industry with market capitalizations ranging between ₹18b and ₹70b had a median total CEO compensation of ₹28m. In other words, Automotive Axles pays its CEO lower than the industry median.

On an industry level, around 79% of total compensation represents salary and 21% is other remuneration. At the company level, Automotive Axles pays Nagaraja Sadashiva Gargeshwari solely through a salary, preferring to go down a conventional route. 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.

Automotive Axles Limited's Growth

Automotive Axles Limited's earnings per share (EPS) grew 28% per year over the last three years. Its revenue is down 6.8% over the previous year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Automotive Axles Limited Been A Good Investment?

Since shareholders would have lost about 2.0% over three years, some Automotive Axles Limited investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Automotive Axles rewards its CEO solely through a salary, ignoring non-salary benefits completely. The uninspiring share price returns contrasts with the strong EPS growth, suggesting that there may be other factors at play causing it to diverge from fundamentals. Shareholders will get the chance to question the board on key concerns and revisit their investment thesis with regards to the company.

CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 1 warning sign for Automotive Axles that investors should look into moving forward.

Switching gears from Automotive Axles, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.