Shareholders May Not Be So Generous With Confidence Petroleum India Limited's (NSE:CONFIPET) CEO Compensation And Here's Why

Key Insights

• Confidence Petroleum India to hold its Annual General Meeting on 30th of September
• Salary of ₹18.0m is part of CEO Nitin Khara's total remuneration
• The total compensation is similar to the average for the industry
• Confidence Petroleum India's EPS declined by 3.1% over the past three years while total shareholder loss over the past three years was 35%

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Shareholders of Confidence Petroleum India Limited (NSE:CONFIPET) will have been dismayed by the negative share price return over the last three years. Per share earnings growth is also poor, despite revenues growing. Shareholders will have a chance to take their concerns to the board at the next AGM on 30th of September and vote on resolutions including executive compensation, which studies show may have an impact on company performance. We think shareholders may be cautious of approving a pay rise for the CEO at the moment, based on our analysis below.

See our latest analysis for Confidence Petroleum India

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

At the time of writing, our data shows that Confidence Petroleum India Limited has a market capitalization of ₹16b, and reported total annual CEO compensation of ₹18m for the year to March 2025. 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 ₹18m.

On examining similar-sized companies in the Indian Machinery industry with market capitalizations between ₹8.9b and ₹35b, we discovered that the median CEO total compensation of that group was ₹17m. So it looks like Confidence Petroleum India compensates Nitin Khara in line with the median for the industry. What's more, Nitin Khara holds ₹1.1b worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

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. 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

Over the last three years, Confidence Petroleum India Limited has shrunk its earnings per share by 3.1% per year. In the last year, its revenue is up 34%.

Investors would be a bit wary of companies that have lower EPS On the other hand, the strong revenue growth suggests the business is growing. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Confidence Petroleum India Limited Been A Good Investment?

With a total shareholder return of -35% over three years, Confidence Petroleum India Limited shareholders would by and large be disappointed. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Confidence Petroleum India pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. The company's earnings haven't grown and possibly because of that, the stock has performed poorly, resulting in a loss for the company's shareholders. In the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan is in line with their expectations.

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 Confidence Petroleum India that investors should look into moving forward.

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.