Here's Why Confidence Petroleum India Limited's (NSE:CONFIPET) CEO May Have Their Pay Bumped Up

The decent performance at Confidence Petroleum India Limited (NSE:CONFIPET) recently will please most shareholders as they go into the AGM coming up on 30 September 2022. This would also be a chance for them to hear the board review the financial results, discuss future company strategy to further improve the business and vote on any resolutions such as executive remuneration. Here is our take on why we think CEO compensation is fair and may even warrant a raise.

See our latest analysis for Confidence Petroleum India

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

Our data indicates that Confidence Petroleum India Limited has a market capitalization of ₹21b, and total annual CEO compensation was reported as ₹9.0m for the year to March 2022. This was the same as last year. It is worth noting that the CEO compensation consists entirely of the salary, worth ₹9.0m.

For comparison, other companies in the same industry with market capitalizations ranging between ₹8.1b and ₹32b had a median total CEO compensation of ₹14m. In other words, Confidence Petroleum India pays its CEO lower than the industry median. Moreover, Nitin Khara also holds ₹1.7b worth of Confidence Petroleum India stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2022	2021	Proportion (2022)
Salary	₹9.0m	₹9.0m	100%
Other	-	-	-
Total Compensation	₹9.0m	₹9.0m	100%

On an industry level, roughly 89% of total compensation represents salary and 11% is other remuneration. At the company level, Confidence Petroleum India pays Nitin Khara solely through a salary, preferring to go down a conventional route. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Confidence Petroleum India Limited's Growth

Confidence Petroleum India Limited has seen its earnings per share (EPS) increase by 6.1% a year over the past three years. It achieved revenue growth of 57% over the last year.

It's great to see that revenue growth is strong. And in that context, the modest EPS improvement certainly isn't shabby. We'd stop short of saying the business performance is amazing, but there are enough positives to justify further research, or even adding the stock to your watch-list. 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 Confidence Petroleum India Limited Been A Good Investment?

Boasting a total shareholder return of 136% 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. While the company seems to be headed in the right direction performance-wise, there's always room for improvement. If it manages to keep up the current streak, CEO remuneration could well be one of shareholders' least concerns. 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.

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

Switching gears from Confidence Petroleum India, 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.