Shareholders May Be More Conservative With Force Motors Limited's (NSE:FORCEMOT) CEO Compensation For Now
Key Insights
- Force Motors will host its Annual General Meeting on 17th of September
- CEO Prasan Singh Firodia's total compensation includes salary of ₹31.3m
- Total compensation is 448% above industry average
- Over the past three years, Force Motors' EPS grew by 84% and over the past three years, the total shareholder return was 1,299%
Under the guidance of CEO Prasan Singh Firodia, Force Motors Limited (NSE:FORCEMOT) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 17th of September. However, some shareholders may still want to keep CEO compensation within reason.
View our latest analysis for Force Motors
How Does Total Compensation For Prasan Singh Firodia Compare With Other Companies In The Industry?
Our data indicates that Force Motors Limited has a market capitalization of ₹242b, and total annual CEO compensation was reported as ₹298m for the year to March 2025. Notably, that's an increase of 78% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at ₹31m.
On comparing similar companies from the Indian Machinery industry with market caps ranging from ₹176b to ₹564b, we found that the median CEO total compensation was ₹54m. Hence, we can conclude that Prasan Singh Firodia is remunerated higher than the industry median. Furthermore, Prasan Singh Firodia directly owns ₹4.1b worth of shares in the company, implying that they are deeply invested in the company's success.
| Component | 2025 | 2024 | Proportion (2025) |
| Salary | ₹31m | ₹15m | 11% |
| Other | ₹267m | ₹152m | 89% |
| Total Compensation | ₹298m | ₹167m | 100% |
On an industry level, roughly 97% of total compensation represents salary and 3% is other remuneration. Force Motors sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
Force Motors Limited's Growth
Force Motors Limited's earnings per share (EPS) grew 84% per year over the last three years. In the last year, its revenue is up 15%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. 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 Force Motors Limited Been A Good Investment?
Boasting a total shareholder return of 1,299% over three years, Force Motors 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...
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. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.
CEO pay is simply one of the many factors that need to be considered while examining business performance. That's why we did our research, and identified 2 warning signs for Force Motors (of which 1 can't be ignored!) that you should know about in order to have a holistic understanding of the stock.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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.