Shareholders Will Likely Find Apollo Pipes Limited's (NSE:APOLLOPIPE) CEO Compensation Acceptable

Key Insights

• Apollo Pipes' Annual General Meeting to take place on 25th of September
• Total pay for CEO Sameer Gupta includes ₹13.5m salary
• Total compensation is 71% below industry average
• Apollo Pipes' EPS declined by 8.4% over the past three years while total shareholder return over the past three years was 13%

Performance at Apollo Pipes Limited (NSE:APOLLOPIPE) has been rather uninspiring recently and shareholders may be wondering how CEO Sameer Gupta plans to fix this. At the next AGM coming up on 25th of September, they can influence managerial decision making through voting on resolutions, including executive remuneration. Voting on executive pay could be a powerful way to influence management, as studies have shown that the right compensation incentives impact company performance. We have prepared some analysis below to show that CEO compensation looks to be reasonable.

View our latest analysis for Apollo Pipes

Comparing Apollo Pipes Limited's CEO Compensation With The Industry

At the time of writing, our data shows that Apollo Pipes Limited has a market capitalization of ₹26b, and reported total annual CEO compensation of ₹14m for the year to March 2024. We note that's an increase of 13% above last year. It is worth noting that the CEO compensation consists entirely of the salary, worth ₹14m.

On comparing similar companies from the Indian Building industry with market caps ranging from ₹17b to ₹67b, we found that the median CEO total compensation was ₹46m. In other words, Apollo Pipes pays its CEO lower than the industry median. Furthermore, Sameer Gupta directly owns ₹6.0b worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	₹14m	₹12m	100%
Other	-	-	-
Total Compensation	₹14m	₹12m	100%

Speaking on an industry level, nearly 89% of total compensation represents salary, while the remainder of 11% is other remuneration. At the company level, Apollo Pipes pays Sameer Gupta 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.

Apollo Pipes Limited's Growth

Over the last three years, Apollo Pipes Limited has shrunk its earnings per share by 8.4% per year. In the last year, its revenue is up 8.3%.

Few shareholders would be pleased to read that EPS have declined. The modest increase in revenue in the last year isn't enough to make us overlook the disappointing change in EPS. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Apollo Pipes Limited Been A Good Investment?

Apollo Pipes Limited has generated a total shareholder return of 13% over three years, so most shareholders would be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

Apollo Pipes rewards its CEO solely through a salary, ignoring non-salary benefits completely. Shareholder returns while positive, need to be looked at along with earnings, which have failed to grow and this could mean that the current momentum may not continue. These concerns could be addressed to the board and shareholders should revisit their investment thesis to see if it still makes sense.

CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 1 warning sign for Apollo Pipes that investors should look into moving forward.

Switching gears from Apollo Pipes, 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.