This Is Why AIA Engineering Limited's (NSE:AIAENG) CEO Can Expect A Bump Up In Their Pay Packet

Key Insights

• AIA Engineering will host its Annual General Meeting on 15th of September
• Salary of ₹10.2m is part of CEO Bhadresh Shah's total remuneration
• The overall pay is 80% below the industry average
• Over the past three years, AIA Engineering's EPS grew by 19% and over the past three years, the total shareholder return was 17%

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Shareholders will probably not be disappointed by the robust results at AIA Engineering Limited (NSE:AIAENG) recently and they will be keeping this in mind as they go into the AGM on 15th of September. They will probably be more interested in hearing the board discuss future initiatives to further improve the business as they vote on resolutions such as executive remuneration. Here is our take on why we think CEO compensation is fair and may even warrant a raise.

Check out our latest analysis for AIA Engineering

How Does Total Compensation For Bhadresh Shah Compare With Other Companies In The Industry?

According to our data, AIA Engineering Limited has a market capitalization of ₹282b, and paid its CEO total annual compensation worth ₹12m over the year to March 2025. That's slightly lower by 6.4% over the previous year. Notably, the salary which is ₹10.2m, represents most of the total compensation being paid.

For comparison, other companies in the Indian Machinery industry with market capitalizations ranging between ₹176b and ₹563b had a median total CEO compensation of ₹60m. That is to say, Bhadresh Shah is paid under the industry median. What's more, Bhadresh Shah holds ₹165b 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 98% of total compensation represents salary and 2% is other remuneration. AIA Engineering pays a modest slice of remuneration through salary, as compared to the broader 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.

AIA Engineering Limited's Growth

AIA Engineering Limited's earnings per share (EPS) grew 19% per year over the last three years. Its revenue is down 7.1% over the previous year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has AIA Engineering Limited Been A Good Investment?

AIA Engineering Limited has generated a total shareholder return of 17% over three years, so most shareholders would be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary...

Overall, the company hasn't done too poorly performance-wise, but we would like to see some improvement. If it continues on the same road, shareholders might feel even more confident about their investment, and have little to no objections concerning CEO pay. 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 a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We did our research and spotted 1 warning sign for AIA Engineering that investors should look into moving forward.

Important note: AIA Engineering is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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.