HBL Power Systems Limited's (NSE:HBLPOWER) CEO Will Probably Have Their Compensation Approved By Shareholders

Key Insights

• HBL Power Systems' Annual General Meeting to take place on 26th of September
• Total pay for CEO Aluru Prasad includes ₹10.3m salary
• Total compensation is similar to the industry average
• Over the past three years, HBL Power Systems' EPS grew by 95% and over the past three years, the total shareholder return was 1,167%

The performance at HBL Power Systems Limited (NSE:HBLPOWER) has been quite strong recently and CEO Aluru Prasad has played a role in it. Shareholders will have this at the front of their minds in the upcoming AGM on 26th of September. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. In light of the great performance, we discuss the case why we think CEO compensation is not excessive.

See our latest analysis for HBL Power Systems

Comparing HBL Power Systems Limited's CEO Compensation With The Industry

According to our data, HBL Power Systems Limited has a market capitalization of ₹169b, and paid its CEO total annual compensation worth ₹48m over the year to March 2024. That's mostly flat as compared to the prior year's compensation. While we always look at total compensation first, our analysis shows that the salary component is less, at ₹10m.

On examining similar-sized companies in the Indian Electrical industry with market capitalizations between ₹84b and ₹268b, we discovered that the median CEO total compensation of that group was ₹60m. From this we gather that Aluru Prasad is paid around the median for CEOs in the industry. What's more, Aluru Prasad holds ₹1.6b worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2024	2023	Proportion (2024)
Salary	₹10m	₹9.6m	21%
Other	₹38m	₹38m	79%
Total Compensation	₹48m	₹47m	100%

On an industry level, roughly 84% of total compensation represents salary and 16% is other remuneration. HBL Power Systems pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at HBL Power Systems Limited's Growth Numbers

HBL Power Systems Limited has seen its earnings per share (EPS) increase by 95% a year over the past three years. Its revenue is up 51% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has HBL Power Systems Limited Been A Good Investment?

Boasting a total shareholder return of 1,167% over three years, HBL Power Systems 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...

The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed 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.

Shareholders may want to check for free if HBL Power Systems insiders are buying or selling shares.

Switching gears from HBL Power Systems, 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.