Shareholders May Be More Conservative With Action Construction Equipment Limited's (NSE:ACE) CEO Compensation For Now

Key Insights

• Action Construction Equipment to hold its Annual General Meeting on 29th of August
• CEO Vijay Agarwal's total compensation includes salary of ₹45.0m
• The total compensation is 53% higher than the average for the industry
• Over the past three years, Action Construction Equipment's EPS grew by 48% and over the past three years, the total shareholder return was 295%

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Under the guidance of CEO Vijay Agarwal, Action Construction Equipment Limited (NSE:ACE) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 29th of August. However, some shareholders will still be cautious of paying the CEO excessively.

View our latest analysis for Action Construction Equipment

How Does Total Compensation For Vijay Agarwal Compare With Other Companies In The Industry?

At the time of writing, our data shows that Action Construction Equipment Limited has a market capitalization of ₹117b, and reported total annual CEO compensation of ₹56m for the year to March 2025. Notably, that's an increase of 17% over the year before. Notably, the salary which is ₹45.0m, represents most of the total compensation being paid.

In comparison with other companies in the Indian Machinery industry with market capitalizations ranging from ₹88b to ₹280b, the reported median CEO total compensation was ₹36m. Hence, we can conclude that Vijay Agarwal is remunerated higher than the industry median. Furthermore, Vijay Agarwal directly owns ₹34b worth of shares in the company, implying that they are deeply invested in the company's success.

Talking in terms of the industry, salary represented approximately 91% of total compensation out of all the companies we analyzed, while other remuneration made up 9% of the pie. Action Construction Equipment sets aside a smaller share of compensation for salary, in comparison to the overall industry. 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.

A Look at Action Construction Equipment Limited's Growth Numbers

Action Construction Equipment Limited has seen its earnings per share (EPS) increase by 48% a year over the past three years. It achieved revenue growth of 8.3% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Action Construction Equipment Limited Been A Good Investment?

Boasting a total shareholder return of 295% over three years, Action Construction Equipment Limited has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

To Conclude...

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.

Shareholders may want to check for free if Action Construction Equipment insiders are buying or selling shares.

Switching gears from Action Construction Equipment, 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.