We Think The Compensation For H.G. Infra Engineering Limited's (NSE:HGINFRA) CEO Looks About Right

Key Insights

• H.G. Infra Engineering's Annual General Meeting to take place on 19th of August
• Total pay for CEO Harendra Singh includes ₹45.0m salary
• Total compensation is similar to the industry average
• Over the past three years, H.G. Infra Engineering's EPS grew by 10.0% and over the past three years, the total shareholder return was 68%

This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.

Performance at H.G. Infra Engineering Limited (NSE:HGINFRA) has been reasonably good and CEO Harendra Singh has done a decent job of steering the company in the right direction. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 19th of August. Here is our take on why we think the CEO compensation looks appropriate.

View our latest analysis for H.G. Infra Engineering

Comparing H.G. Infra Engineering Limited's CEO Compensation With The Industry

According to our data, H.G. Infra Engineering Limited has a market capitalization of ₹65b, and paid its CEO total annual compensation worth ₹45m over the year to March 2025. Notably, that's an increase of 15% over the year before. It is worth noting that the CEO compensation consists entirely of the salary, worth ₹45m.

In comparison with other companies in the Indian Construction industry with market capitalizations ranging from ₹35b to ₹140b, the reported median CEO total compensation was ₹49m. So it looks like H.G. Infra Engineering compensates Harendra Singh in line with the median for the industry.

Talking in terms of the industry, salary represented approximately 100% of total compensation out of all the companies we analyzed, while other remuneration made up 0.14803849% of the pie. Speaking on a company level, H.G. Infra Engineering prefers to tread along a traditional path, disbursing all compensation through a salary. 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.

H.G. Infra Engineering Limited's Growth

Over the past three years, H.G. Infra Engineering Limited has seen its earnings per share (EPS) grow by 10.0% per year. In the last year, its revenue is down 6.0%.

We would argue that the lack of revenue growth in the last year is less than ideal, but it is good to see a modest EPS growth at least. It's hard to reach a conclusion about business performance right now. This may be one to watch. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has H.G. Infra Engineering Limited Been A Good Investment?

Most shareholders would probably be pleased with H.G. Infra Engineering Limited for providing a total return of 68% over three years. 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...

H.G. Infra Engineering pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. However, we still think that any proposed increase in CEO compensation will be examined closely to make sure the compensation is appropriate and linked to performance.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 2 warning signs for H.G. Infra Engineering that investors should think about before committing capital to this 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.