Ahluwalia Contracts (India) Limited's (NSE:AHLUCONT) CEO Looks Due For A Compensation Raise

The solid performance at Ahluwalia Contracts (India) Limited (NSE:AHLUCONT) has been impressive and shareholders will probably be pleased to know that CEO Bikramjit Ahluwalia has delivered. At the upcoming AGM on 28 September 2022, they will get a chance to hear the board review the company results, discuss future strategy and cast their vote on any resolutions such as executive remuneration. We think the CEO has done a pretty decent job and probably deserves a well-earned pay rise.

Check out our latest analysis for Ahluwalia Contracts (India)

Comparing Ahluwalia Contracts (India) Limited's CEO Compensation With The Industry

Our data indicates that Ahluwalia Contracts (India) Limited has a market capitalization of ₹31b, and total annual CEO compensation was reported as ₹13m for the year to March 2022. There was no change in the compensation compared to last year. It is worth noting that the CEO compensation consists entirely of the salary, worth ₹13m.

On comparing similar companies from the same industry with market caps ranging from ₹16b to ₹64b, we found that the median CEO total compensation was ₹39m. In other words, Ahluwalia Contracts (India) pays its CEO lower than the industry median. What's more, Bikramjit Ahluwalia holds ₹5.0b worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2022	2021	Proportion (2022)
Salary	₹13m	₹13m	100%
Other	-	-	-
Total Compensation	₹13m	₹13m	100%

Speaking on an industry level, nearly 96% of total compensation represents salary, while the remainder of 4% is other remuneration. At the company level, Ahluwalia Contracts (India) pays Bikramjit Ahluwalia 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.

A Look at Ahluwalia Contracts (India) Limited's Growth Numbers

Over the past three years, Ahluwalia Contracts (India) Limited has seen its earnings per share (EPS) grow by 14% per year. In the last year, its revenue is up 18%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Ahluwalia Contracts (India) Limited Been A Good Investment?

We think that the total shareholder return of 54%, over three years, would leave most Ahluwalia Contracts (India) Limited shareholders smiling. 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.

In Summary...

Ahluwalia Contracts (India) pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Ahluwalia Contracts (India) (free visualization of insider trades).

Switching gears from Ahluwalia Contracts (India), 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.