We Think ITD Cementation India Limited's (NSE:ITDCEM) CEO Compensation Looks Fair

Key Insights

• ITD Cementation India's Annual General Meeting to take place on 28th of August
• Salary of ₹20.1m is part of CEO Jayanta Basu's total remuneration
• The total compensation is similar to the average for the industry
• ITD Cementation India's total shareholder return over the past three years was 640% while its EPS grew by 85% over the past three years

The performance at ITD Cementation India Limited (NSE:ITDCEM) has been quite strong recently and CEO Jayanta Basu has played a role in it. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 28th of August. It is likely that the focus will be on company strategy going forward as shareholders hear from the board and cast their votes on resolutions such as executive remuneration and other matters. Here is our take on why we think CEO compensation is not extravagant.

Check out our latest analysis for ITD Cementation India

Comparing ITD Cementation India Limited's CEO Compensation With The Industry

Our data indicates that ITD Cementation India Limited has a market capitalization of ₹94b, and total annual CEO compensation was reported as ₹43m for the year to March 2024. Notably, that's an increase of 34% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at ₹20m.

On comparing similar companies from the Indian Construction industry with market caps ranging from ₹34b to ₹134b, we found that the median CEO total compensation was ₹35m. This suggests that ITD Cementation India remunerates its CEO largely in line with the industry average.

Component	2024	2023	Proportion (2024)
Salary	₹20m	₹17m	47%
Other	₹23m	₹15m	53%
Total Compensation	₹43m	₹32m	100%

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. ITD Cementation India pays a modest slice of remuneration through salary, as compared to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at ITD Cementation India Limited's Growth Numbers

ITD Cementation India Limited has seen its earnings per share (EPS) increase by 85% a year over the past three years. Its revenue is up 42% 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 ITD Cementation India Limited Been A Good Investment?

We think that the total shareholder return of 640%, over three years, would leave most ITD Cementation India Limited shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

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. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

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 ITD Cementation India that investors should be aware of in a dynamic business environment.

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.