Key Insights
- Ashoka Buildcon to hold its Annual General Meeting on 29th of September
- Salary of ₹48.0m is part of CEO Satish Parakh's total remuneration
- The total compensation is similar to the average for the industry
- Ashoka Buildcon's EPS grew by 28% over the past three years while total shareholder return over the past three years was 164%
The performance at Ashoka Buildcon Limited (NSE:ASHOKA) has been quite strong recently and CEO Satish Parakh has played a role in it. Coming up to the next AGM on 29th of September, shareholders would be keeping this in mind. The focus will probably be on the future company strategy as shareholders cast their votes on resolutions such as executive remuneration and other matters. In light of the great performance, we discuss the case why we think CEO compensation is not excessive.
Check out our latest analysis for Ashoka Buildcon
How Does Total Compensation For Satish Parakh Compare With Other Companies In The Industry?
At the time of writing, our data shows that Ashoka Buildcon Limited has a market capitalization of ₹55b, and reported total annual CEO compensation of ₹54m for the year to March 2025. This means that the compensation hasn't changed much from last year. In particular, the salary of ₹48.0m, makes up a huge portion of the total compensation being paid to the CEO.
On comparing similar companies from the Indian Construction industry with market caps ranging from ₹35b to ₹141b, we found that the median CEO total compensation was ₹52m. From this we gather that Satish Parakh is paid around the median for CEOs in the industry. Moreover, Satish Parakh also holds ₹10b worth of Ashoka Buildcon stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
| Component | 2025 | 2024 | Proportion (2025) |
| Salary | ₹48m | ₹44m | 88% |
| Other | ₹6.3m | ₹8.8m | 12% |
| Total Compensation | ₹54m | ₹53m | 100% |
Speaking on an industry level, all of total compensation represents salary, while non-salary remuneration is completely ignored. Ashoka Buildcon sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
Ashoka Buildcon Limited's Growth
Ashoka Buildcon Limited has seen its earnings per share (EPS) increase by 28% a year over the past three years. Its revenue is down 8.4% over the previous year.
Shareholders would be glad to know that the company has improved itself over the last few years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. 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 Ashoka Buildcon Limited Been A Good Investment?
We think that the total shareholder return of 164%, over three years, would leave most Ashoka Buildcon Limited shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
To Conclude...
Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 1 warning sign for Ashoka Buildcon that investors should look into moving forward.
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.