Increases to Indo Tech Transformers Limited's (NSE:INDOTECH) CEO Compensation Might Cool off for now

Under the guidance of CEO Shridhar Gokhale, Indo Tech Transformers Limited (NSE:INDOTECH) 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 29 September 2022. However, some shareholders may still want to keep CEO compensation within reason.

View our latest analysis for Indo Tech Transformers

Comparing Indo Tech Transformers Limited's CEO Compensation With The Industry

According to our data, Indo Tech Transformers Limited has a market capitalization of ₹2.3b, and paid its CEO total annual compensation worth ₹9.0m over the year to March 2022. That's a fairly small increase of 6.8% over the previous year. Notably, the salary of ₹9.0m is the entirety of the CEO compensation.

On comparing similar-sized companies in the industry with market capitalizations below ₹16b, we found that the median total CEO compensation was ₹5.0m. Accordingly, our analysis reveals that Indo Tech Transformers Limited pays Shridhar Gokhale north of the industry median. Furthermore, Shridhar Gokhale directly owns ₹611k worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2022	2021	Proportion (2022)
Salary	₹9.0m	₹8.4m	100%
Other	-	-	-
Total Compensation	₹9.0m	₹8.4m	100%

On an industry level, around 71% of total compensation represents salary and 29% is other remuneration. On a company level, Indo Tech Transformers prefers to reward its CEO through a salary, opting not to pay Shridhar Gokhale 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 Indo Tech Transformers Limited's Growth Numbers

Indo Tech Transformers Limited has seen its earnings per share (EPS) increase by 92% a year over the past three years. It achieved revenue growth of 47% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Indo Tech Transformers Limited Been A Good Investment?

Boasting a total shareholder return of 150% over three years, Indo Tech Transformers 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.

To Conclude...

Indo Tech Transformers rewards its CEO solely through a salary, ignoring non-salary benefits completely. 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, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 2 warning signs for Indo Tech Transformers that investors should be aware of in a dynamic business environment.

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.