We Think Some Shareholders May Hesitate To Increase AXISCADES Technologies Limited's (NSE:AXISCADES) CEO Compensation

Key Insights

• AXISCADES Technologies will host its Annual General Meeting on 18th of September
• Total pay for CEO Arun Krishnamurthi includes ₹28.1m salary
• The total compensation is 565% higher than the average for the industry
• AXISCADES Technologies' total shareholder return over the past three years was 612% while its EPS grew by 88% over the past three years

CEO Arun Krishnamurthi has done a decent job of delivering relatively good performance at AXISCADES Technologies Limited (NSE:AXISCADES) recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 18th of September. However, some shareholders will still be cautious of paying the CEO excessively.

Check out our latest analysis for AXISCADES Technologies

Comparing AXISCADES Technologies Limited's CEO Compensation With The Industry

According to our data, AXISCADES Technologies Limited has a market capitalization of ₹23b, and paid its CEO total annual compensation worth ₹84m over the year to March 2024. This means that the compensation hasn't changed much from last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at ₹28m.

On examining similar-sized companies in the Indian Construction industry with market capitalizations between ₹8.4b and ₹34b, we discovered that the median CEO total compensation of that group was ₹13m. This suggests that Arun Krishnamurthi is paid more than the median for the industry.

Component	2024	2023	Proportion (2024)
Salary	₹28m	₹26m	34%
Other	₹56m	₹57m	66%
Total Compensation	₹84m	₹83m	100%

Speaking on an industry level, nearly 98% of total compensation represents salary, while the remainder of 2% is other remuneration. It's interesting to note that AXISCADES Technologies allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at AXISCADES Technologies Limited's Growth Numbers

AXISCADES Technologies Limited's earnings per share (EPS) grew 88% per year over the last three years. In the last year, its revenue is up 13%.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has AXISCADES Technologies Limited Been A Good Investment?

Boasting a total shareholder return of 612% over three years, AXISCADES Technologies Limited has done well by shareholders. 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.

To Conclude...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We identified 2 warning signs for AXISCADES Technologies (1 is potentially serious!) that you should be aware of before investing here.

Switching gears from AXISCADES Technologies, 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.