We Take A Look At Whether GMR Power And Urban Infra Limited's (NSE:GMRP&UI) CEO May Be Underpaid

Key Insights

• GMR Power And Urban Infra will host its Annual General Meeting on 29th of September
• CEO Srinivas Bommidala's total compensation includes salary of ₹31.3m
• The overall pay is 36% below the industry average
• Over the past three years, GMR Power And Urban Infra's EPS grew by 26% and over the past three years, the total shareholder return was 381%

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The impressive results at GMR Power And Urban Infra Limited (NSE:GMRP&UI) recently will be great news for shareholders. At the upcoming AGM on 29th 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. Here we will show why we think CEO compensation is appropriate and discuss the case for a pay rise.

Check out our latest analysis for GMR Power And Urban Infra

How Does Total Compensation For Srinivas Bommidala Compare With Other Companies In The Industry?

Our data indicates that GMR Power And Urban Infra Limited has a market capitalization of ₹89b, and total annual CEO compensation was reported as ₹33m for the year to March 2025. Notably, that's an increase of 24% over the year before. We note that the salary portion, which stands at ₹31.3m constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the Indian Construction industry with market capitalizations ranging between ₹35b and ₹141b had a median total CEO compensation of ₹52m. This suggests that Srinivas Bommidala is paid below the industry median. What's more, Srinivas Bommidala holds ₹5.6m 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, it's fascinating to see that all of total compensation represents salary and non-salary benefits do not factor into the equation at all. GMR Power And Urban Infra is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at GMR Power And Urban Infra Limited's Growth Numbers

GMR Power And Urban Infra Limited has seen its earnings per share (EPS) increase by 26% a year over the past three years. It achieved revenue growth of 28% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has GMR Power And Urban Infra Limited Been A Good Investment?

Boasting a total shareholder return of 381% over three years, GMR Power And Urban Infra Limited has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

To Conclude...

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.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We identified 3 warning signs for GMR Power And Urban Infra (1 doesn't sit too well with us!) that you should be aware of before investing here.

Important note: GMR Power And Urban Infra 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.