Shareholders Will Probably Hold Off On Increasing A B Infrabuild Limited's (NSE:ABINFRA) CEO Compensation For The Time Being

Key Insights

• A B Infrabuild's Annual General Meeting to take place on 29th of September
• Total pay for CEO Amit Mishra includes ₹7.20m salary
• Total compensation is 100% above industry average
• A B Infrabuild's EPS grew by 20% over the past three years while total shareholder return over the past three years was 1,338%

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Performance at A B Infrabuild Limited (NSE:ABINFRA) has been reasonably good and CEO Amit Mishra has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 29th of September, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

Check out our latest analysis for A B Infrabuild

How Does Total Compensation For Amit Mishra Compare With Other Companies In The Industry?

At the time of writing, our data shows that A B Infrabuild Limited has a market capitalization of ₹12b, and reported total annual CEO compensation of ₹7.2m for the year to March 2025. Notably, that's a decrease of 55% over the year before. Notably, the salary of ₹7.2m is the entirety of the CEO compensation.

For comparison, other companies in the Indian Construction industry with market capitalizations below ₹18b, reported a median total CEO compensation of ₹3.6m. This suggests that Amit Mishra is paid more than the median for the industry. Moreover, Amit Mishra also holds ₹3.6b worth of A B Infrabuild stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Speaking on an industry level, all of total compensation represents salary, while non-salary remuneration is completely ignored. At the company level, A B Infrabuild pays Amit Mishra solely through a salary, preferring to go down a conventional route. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at A B Infrabuild Limited's Growth Numbers

A B Infrabuild Limited's earnings per share (EPS) grew 20% per year over the last three years. In the last year, its revenue is up 77%.

Shareholders would be glad to know that the company has improved itself over the last few years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast 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 A B Infrabuild Limited Been A Good Investment?

Most shareholders would probably be pleased with A B Infrabuild Limited for providing a total return of 1,338% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

To Conclude...

A B Infrabuild pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. 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, 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 compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 2 warning signs for A B Infrabuild that you should be aware of before investing.

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.