Here's Why Shareholders Should Examine Apollo Pipes Limited's (NSE:APOLLOPIPE) CEO Compensation Package More Closely

Key Insights

• Apollo Pipes to hold its Annual General Meeting on 26th of September
• Salary of ₹18.0m is part of CEO Sameer Gupta's total remuneration
• The overall pay is comparable to the industry average
• Over the past three years, Apollo Pipes' EPS fell by 20% and over the past three years, the total loss to shareholders 23%

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The results at Apollo Pipes Limited (NSE:APOLLOPIPE) have been quite disappointing recently and CEO Sameer Gupta bears some responsibility for this. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 26th of September. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. From our analysis, we think CEO compensation may need a review in light of the recent performance.

Check out our latest analysis for Apollo Pipes

How Does Total Compensation For Sameer Gupta Compare With Other Companies In The Industry?

At the time of writing, our data shows that Apollo Pipes Limited has a market capitalization of ₹18b, and reported total annual CEO compensation of ₹18m for the year to March 2025. That's a notable increase of 33% on last year. Notably, the salary of ₹18m is the entirety of the CEO compensation.

On comparing similar companies from the Indian Building industry with market caps ranging from ₹8.8b to ₹35b, we found that the median CEO total compensation was ₹24m. This suggests that Apollo Pipes remunerates its CEO largely in line with the industry average. Furthermore, Sameer Gupta directly owns ₹4.0b worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, it's fascinating to see that all of total compensation represents salary and non-salary benefits do not factor into the equation at all. Speaking on a company level, Apollo Pipes prefers to tread along a traditional path, disbursing all compensation through a salary. 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.

Apollo Pipes Limited's Growth

Over the last three years, Apollo Pipes Limited has shrunk its earnings per share by 20% per year. In the last year, its revenue is up 11%.

The decline in EPS is a bit concerning. And while it's good to see some good revenue growth recently, the growth isn't really fast enough for us to put aside my concerns around EPS. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Apollo Pipes Limited Been A Good Investment?

Given the total shareholder loss of 23% over three years, many shareholders in Apollo Pipes Limited are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

Apollo Pipes pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

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. That's why we did some digging and identified 1 warning sign for Apollo Pipes that investors should think about before committing capital to this stock.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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.