The Compensation For Apollo Micro Systems Limited's (NSE:APOLLO) CEO Looks Deserved And Here's Why

Key Insights

• Apollo Micro Systems to hold its Annual General Meeting on 27th of September
• CEO Karunakar Baddam's total compensation includes salary of ₹18.0m
• Total compensation is similar to the industry average
• Apollo Micro Systems' total shareholder return over the past three years was 817% while its EPS grew by 37% over the past three years

The performance at Apollo Micro Systems Limited (NSE:APOLLO) has been quite strong recently and CEO Karunakar Baddam has played a role in it. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 27th of September. It is likely that the focus will be on company strategy going forward as shareholders hear from the board and cast their votes on resolutions such as executive remuneration and other matters. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.

View our latest analysis for Apollo Micro Systems

Comparing Apollo Micro Systems Limited's CEO Compensation With The Industry

Our data indicates that Apollo Micro Systems Limited has a market capitalization of ₹32b, and total annual CEO compensation was reported as ₹18m for the year to March 2024. This was the same as last year. It is worth noting that the CEO compensation consists entirely of the salary, worth ₹18m.

For comparison, other companies in the Indian Aerospace & Defense industry with market capitalizations ranging between ₹17b and ₹67b had a median total CEO compensation of ₹19m. This suggests that Apollo Micro Systems remunerates its CEO largely in line with the industry average. Furthermore, Karunakar Baddam directly owns ₹18b worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	₹18m	₹18m	100%
Other	-	-	-
Total Compensation	₹18m	₹18m	100%

Talking in terms of the industry, salary represented approximately 92% of total compensation out of all the companies we analyzed, while other remuneration made up 8% of the pie. Speaking on a company level, Apollo Micro Systems prefers to tread along a traditional path, disbursing all compensation through a salary. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Apollo Micro Systems Limited's Growth

Apollo Micro Systems Limited's earnings per share (EPS) grew 37% per year over the last three years. In the last year, its revenue is up 36%.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. 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 Apollo Micro Systems Limited Been A Good Investment?

We think that the total shareholder return of 817%, over three years, would leave most Apollo Micro Systems Limited shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

Apollo Micro Systems 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.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 1 warning sign for Apollo Micro Systems that you should be aware of before investing.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.