Here's Why Shareholders Will Not Be Complaining About J. Kumar Infraprojects Limited's (NSE:JKIL) CEO Pay Packet

Key Insights

• J. Kumar Infraprojects to hold its Annual General Meeting on 26th of September
• CEO Kamal Gupta's total compensation includes salary of ₹30.0m
• The total compensation is similar to the average for the industry
• J. Kumar Infraprojects' EPS grew by 33% over the past three years while total shareholder return over the past three years was 307%

It would be hard to discount the role that CEO Kamal Gupta has played in delivering the impressive results at J. Kumar Infraprojects Limited (NSE:JKIL) recently. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 26th of September. 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. In light of the great performance, we discuss the case why we think CEO compensation is not excessive.

View our latest analysis for J. Kumar Infraprojects

How Does Total Compensation For Kamal Gupta Compare With Other Companies In The Industry?

Our data indicates that J. Kumar Infraprojects Limited has a market capitalization of ₹30b, and total annual CEO compensation was reported as ₹30m for the year to March 2023. This was the same amount the CEO received in the prior year. It is worth noting that the CEO compensation consists entirely of the salary, worth ₹30m.

For comparison, other companies in the Indian Construction industry with market capitalizations ranging between ₹17b and ₹67b had a median total CEO compensation of ₹29m. This suggests that J. Kumar Infraprojects remunerates its CEO largely in line with the industry average. What's more, Kamal Gupta holds ₹2.1b worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2023	2022	Proportion (2023)
Salary	₹30m	₹30m	100%
Other	-	-	-
Total Compensation	₹30m	₹30m	100%

On an industry level, roughly 98% of total compensation represents salary and 2% is other remuneration. At the company level, J. Kumar Infraprojects pays Kamal Gupta solely through a salary, preferring to go down a conventional route. 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.

J. Kumar Infraprojects Limited's Growth

J. Kumar Infraprojects Limited has seen its earnings per share (EPS) increase by 33% a year over the past three years. Its revenue is up 13% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and 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 J. Kumar Infraprojects Limited Been A Good Investment?

We think that the total shareholder return of 307%, over three years, would leave most J. Kumar Infraprojects Limited shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

J. Kumar Infraprojects rewards its CEO solely through a salary, ignoring non-salary benefits completely. 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.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 1 warning sign for J. Kumar Infraprojects that investors should look into moving forward.

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.