We Discuss Whether Eimco Elecon (India) Limited's (NSE:EIMCOELECO) CEO Is Due For A Pay Rise

Key Insights

• Eimco Elecon (India) will host its Annual General Meeting on 25th of June
• CEO Prayasvin Patel's total compensation includes salary of ₹6.00m
• The total compensation is 65% less than the average for the industry
• Over the past three years, Eimco Elecon (India)'s EPS grew by 78% and over the past three years, the total shareholder return was 578%

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Shareholders will be pleased by the impressive results for Eimco Elecon (India) Limited (NSE:EIMCOELECO) recently and CEO Prayasvin Patel has played a key role. At the upcoming AGM on 25th of June, they will get a chance to hear the board review the company results, discuss future strategy and cast their vote on any resolutions such as executive remuneration. Let's take a look at why we think the CEO has done a good job and we'll present the case for a bump in pay.

See our latest analysis for Eimco Elecon (India)

Comparing Eimco Elecon (India) Limited's CEO Compensation With The Industry

Our data indicates that Eimco Elecon (India) Limited has a market capitalization of ₹14b, and total annual CEO compensation was reported as ₹6.0m for the year to March 2025. This was the same as last year. It is worth noting that the CEO compensation consists entirely of the salary, worth ₹6.0m.

On examining similar-sized companies in the Indian Machinery industry with market capitalizations between ₹8.6b and ₹35b, we discovered that the median CEO total compensation of that group was ₹17m. In other words, Eimco Elecon (India) pays its CEO lower than the industry median. What's more, Prayasvin Patel holds ₹43m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, around 90% of total compensation represents salary and 10% is other remuneration. On a company level, Eimco Elecon (India) prefers to reward its CEO through a salary, opting not to pay Prayasvin Patel 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.

A Look at Eimco Elecon (India) Limited's Growth Numbers

Over the past three years, Eimco Elecon (India) Limited has seen its earnings per share (EPS) grow by 78% per year. It achieved revenue growth of 8.3% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Eimco Elecon (India) Limited Been A Good Investment?

Most shareholders would probably be pleased with Eimco Elecon (India) Limited for providing a total return of 578% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

Eimco Elecon (India) rewards its CEO solely through a salary, ignoring non-salary benefits completely. Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. 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.

CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 2 warning signs for Eimco Elecon (India) 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.