Confidence Petroleum India Limited's (NSE:CONFIPET) CEO Looks Due For A Compensation Raise

Key Insights

• Confidence Petroleum India to hold its Annual General Meeting on 30th of September
• CEO Nitin Khara's total compensation includes salary of ₹10.0m
• The total compensation is 31% less than the average for the industry
• Over the past three years, Confidence Petroleum India's EPS grew by 51% and over the past three years, the total shareholder return was 317%

The solid performance at Confidence Petroleum India Limited (NSE:CONFIPET) has been impressive and shareholders will probably be pleased to know that CEO Nitin Khara has delivered. At the upcoming AGM on 30th of September, they would be interested to hear about the company strategy going forward and get a chance to cast their votes on resolutions such as executive remuneration and other company matters. We think the CEO has done a pretty decent job and probably deserves a well-earned pay rise.

See our latest analysis for Confidence Petroleum India

How Does Total Compensation For Nitin Khara Compare With Other Companies In The Industry?

According to our data, Confidence Petroleum India Limited has a market capitalization of ₹25b, and paid its CEO total annual compensation worth ₹10m over the year to March 2023. Notably, that's an increase of 11% over the year before. It is worth noting that the CEO compensation consists entirely of the salary, worth ₹10m.

For comparison, other companies in the Indian Machinery industry with market capitalizations ranging between ₹8.3b and ₹33b had a median total CEO compensation of ₹15m. This suggests that Nitin Khara is paid below the industry median. Furthermore, Nitin Khara directly owns ₹2.0b worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2023	2022	Proportion (2023)
Salary	₹10m	₹9.0m	100%
Other	-	-	-
Total Compensation	₹10m	₹9.0m	100%

Speaking on an industry level, nearly 90% of total compensation represents salary, while the remainder of 10% is other remuneration. On a company level, Confidence Petroleum India prefers to reward its CEO through a salary, opting not to pay Nitin Khara through non-salary benefits. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Confidence Petroleum India Limited's Growth

Confidence Petroleum India Limited's earnings per share (EPS) grew 51% per year over the last three years. Its revenue is up 75% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Confidence Petroleum India Limited Been A Good Investment?

Boasting a total shareholder return of 317% over three years, Confidence Petroleum India Limited has done well by shareholders. 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.

In Summary...

Confidence Petroleum India 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. 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.

Shareholders may want to check for free if Confidence Petroleum India insiders are buying or selling shares.

Important note: Confidence Petroleum India 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.