We Take A Look At Why J. Kumar Infraprojects Limited's (NSE:JKIL) CEO Compensation Is Well Earned

Key Insights

• J. Kumar Infraprojects' Annual General Meeting to take place on 24th of September
• Salary of ₹30.0m is part of CEO Kamal Gupta's total remuneration
• The total compensation is similar to the average for the industry
• J. Kumar Infraprojects' EPS grew by 43% over the past three years while total shareholder return over the past three years was 320%

The performance at J. Kumar Infraprojects Limited (NSE:JKIL) has been quite strong recently and CEO Kamal Gupta has played a role in it. Shareholders will have this at the front of their minds in the upcoming AGM on 24th of September. The focus will probably be on the future company strategy as shareholders cast their votes on resolutions such as executive remuneration and other matters. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.

See our latest analysis for J. Kumar Infraprojects

Comparing J. Kumar Infraprojects Limited's CEO Compensation With The Industry

At the time of writing, our data shows that J. Kumar Infraprojects Limited has a market capitalization of ₹57b, and reported total annual CEO compensation of ₹30m for the year to March 2024. There was no change in the compensation compared to last year. It is worth noting that the CEO compensation consists entirely of the salary, worth ₹30m.

On examining similar-sized companies in the Indian Construction industry with market capitalizations between ₹34b and ₹134b, we discovered that the median CEO total compensation of that group was ₹34m. So it looks like J. Kumar Infraprojects compensates Kamal Gupta in line with the median for the industry. What's more, Kamal Gupta holds ₹4.0b 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	₹30m	₹30m	100%
Other	-	-	-
Total Compensation	₹30m	₹30m	100%

On an industry level, around 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 total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

J. Kumar Infraprojects Limited's Growth

J. Kumar Infraprojects Limited's earnings per share (EPS) grew 43% per year over the last three years. It achieved revenue growth of 16% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has J. Kumar Infraprojects Limited Been A Good Investment?

Boasting a total shareholder return of 320% over three years, J. Kumar Infraprojects Limited has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

J. Kumar Infraprojects pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. 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 it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 1 warning sign for J. Kumar Infraprojects that you should be aware of before investing.

Switching gears from J. Kumar Infraprojects, 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.