This Is Why Ador Welding Limited's (NSE:ADOR) CEO Compensation Looks Appropriate

Key Insights

• Ador Welding will host its Annual General Meeting on 15th of July
• Salary of ₹18.6m is part of CEO Aditya Malkani's total remuneration
• The overall pay is comparable to the industry average
• Ador Welding's EPS grew by 1.4% over the past three years while total shareholder return over the past three years was 53%

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CEO Aditya Malkani has done a decent job of delivering relatively good performance at Ador Welding Limited (NSE:ADOR) recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 15th of July. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.

Check out our latest analysis for Ador Welding

How Does Total Compensation For Aditya Malkani Compare With Other Companies In The Industry?

At the time of writing, our data shows that Ador Welding Limited has a market capitalization of ₹19b, and reported total annual CEO compensation of ₹21m for the year to March 2025. That's a notable increase of 20% on last year. We note that the salary portion, which stands at ₹18.6m constitutes the majority of total compensation received by the CEO.

On comparing similar companies from the Indian Machinery industry with market caps ranging from ₹8.6b to ₹34b, we found that the median CEO total compensation was ₹18m. So it looks like Ador Welding compensates Aditya Malkani in line with the median for the industry. What's more, Aditya Malkani holds ₹380m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, roughly 91% of total compensation represents salary and 9% is other remuneration. Although there is a difference in how total compensation is set, Ador Welding more or less reflects the market in terms of setting the salary. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Ador Welding Limited's Growth Numbers

Ador Welding Limited has seen its earnings per share (EPS) increase by 1.4% a year over the past three years. In the last year, its revenue is up 4.6%.

We'd prefer higher revenue growth, but the modest improvement in EPS is good. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Ador Welding Limited Been A Good Investment?

Most shareholders would probably be pleased with Ador Welding Limited for providing a total return of 53% over three years. 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. In saying that, any proposed increase to CEO compensation will still be assessed on how reasonable it is based on performance and industry benchmarks.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 3 warning signs for Ador Welding that you should be aware of before investing.

Switching gears from Ador Welding, 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.