It's Unlikely That India Nippon Electricals Limited's (NSE:INDNIPPON) CEO Will See A Huge Pay Rise This Year

Key Insights

• India Nippon Electricals' Annual General Meeting to take place on 19th of September
• Total pay for CEO Arvind Balaji includes ₹14.4m salary
• The overall pay is 41% above the industry average
• Over the past three years, India Nippon Electricals' EPS grew by 20% and over the past three years, the total shareholder return was 113%

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Performance at India Nippon Electricals Limited (NSE:INDNIPPON) has been reasonably good and CEO Arvind Balaji 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 19th of September. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

See our latest analysis for India Nippon Electricals

Comparing India Nippon Electricals Limited's CEO Compensation With The Industry

Our data indicates that India Nippon Electricals Limited has a market capitalization of ₹21b, and total annual CEO compensation was reported as ₹38m for the year to March 2025. Notably, that's an increase of 25% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at ₹14m.

On comparing similar companies from the Indian Auto Components industry with market caps ranging from ₹8.8b to ₹35b, we found that the median CEO total compensation was ₹27m. This suggests that Arvind Balaji is paid more than the median for the industry.

On an industry level, roughly 78% of total compensation represents salary and 22% is other remuneration. India Nippon Electricals pays a modest slice of remuneration through salary, as compared 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.

India Nippon Electricals Limited's Growth

India Nippon Electricals Limited has seen its earnings per share (EPS) increase by 20% a year over the past three years. In the last year, its revenue is up 18%.

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 India Nippon Electricals Limited Been A Good Investment?

Boasting a total shareholder return of 113% over three years, India Nippon Electricals 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, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

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 India Nippon Electricals that investors should be aware of in a dynamic business environment.

Switching gears from India Nippon Electricals, 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.