We Discuss Why The CEO Of Apollo Pipes Limited (NSE:APOLLOPIPE) Is Due For A Pay Rise

Key Insights

• Apollo Pipes' Annual General Meeting to take place on 23rd of September
• Salary of ₹12.0m is part of CEO Sameer Gupta's total remuneration
• Total compensation is 65% below industry average
• Apollo Pipes' EPS grew by 12% over the past three years while total shareholder return over the past three years was 443%

The solid performance at Apollo Pipes Limited (NSE:APOLLOPIPE) has been impressive and shareholders will probably be pleased to know that CEO Sameer Gupta has delivered. This would be kept in mind at the upcoming AGM on 23rd of September which will be a chance for them to hear the board review the financial results, discuss future company strategy and vote on resolutions such as executive remuneration and other matters. We think the CEO has done a pretty decent job and probably deserves a well-earned pay rise.

Check out our latest analysis for Apollo Pipes

Comparing Apollo Pipes Limited's CEO Compensation With The Industry

According to our data, Apollo Pipes Limited has a market capitalization of ₹28b, and paid its CEO total annual compensation worth ₹12m over the year to March 2023. This was the same amount the CEO received in the prior year. It is worth noting that the CEO compensation consists entirely of the salary, worth ₹12m.

For comparison, other companies in the Indian Building industry with market capitalizations ranging between ₹17b and ₹66b had a median total CEO compensation of ₹34m. Accordingly, Apollo Pipes pays its CEO under the industry median. Moreover, Sameer Gupta also holds ₹6.8b worth of Apollo Pipes stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2023	2022	Proportion (2023)
Salary	₹12m	₹12m	100%
Other	-	-	-
Total Compensation	₹12m	₹12m	100%

Talking in terms of the industry, salary represented approximately 97% of total compensation out of all the companies we analyzed, while other remuneration made up 3% of the pie. Speaking on a company level, Apollo Pipes 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.

A Look at Apollo Pipes Limited's Growth Numbers

Apollo Pipes Limited's earnings per share (EPS) grew 12% per year over the last three years. Its revenue is up 10% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. 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?

We think that the total shareholder return of 443%, over three years, would leave most Apollo Pipes Limited shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

Apollo Pipes rewards its CEO solely through a salary, ignoring non-salary benefits completely. Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at 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 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 Apollo Pipes that investors should look into moving forward.

Important note: Apollo Pipes 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.