Shareholders May Not Be So Generous With KNR Constructions Limited's (NSE:KNRCON) CEO Compensation And Here's Why

Key Insights

• KNR Constructions to hold its Annual General Meeting on 25th of September
• Salary of ₹78.0m is part of CEO Kamidi Reddy's total remuneration
• The overall pay is 159% above the industry average
• KNR Constructions' three-year loss to shareholders was 14% while its EPS grew by 38% over the past three years

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In the past three years, the share price of KNR Constructions Limited (NSE:KNRCON) has struggled to generate growth for its shareholders. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. The AGM coming up on the 25th of September could be an opportunity for shareholders to bring these concerns to the board's attention. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.

Check out our latest analysis for KNR Constructions

Comparing KNR Constructions Limited's CEO Compensation With The Industry

Our data indicates that KNR Constructions Limited has a market capitalization of ₹58b, and total annual CEO compensation was reported as ₹137m for the year to March 2025. We note that's an increase of 9.4% above last year. In particular, the salary of ₹78.0m, makes up a fairly large portion of the total compensation being paid to the CEO.

In comparison with other companies in the Indian Construction industry with market capitalizations ranging from ₹35b to ₹141b, the reported median CEO total compensation was ₹53m. This suggests that Kamidi Reddy is paid more than the median for the industry. Furthermore, Kamidi Reddy directly owns ₹18b worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2025	2024	Proportion (2025)
Salary	₹78m	₹78m	57%
Other	₹59m	₹47m	43%
Total Compensation	₹137m	₹125m	100%

Talking in terms of the industry, salary represents all of total compensation among the companies we analyzed, while other remuneration is, interestingly, completely ignored. It's interesting to note that KNR Constructions allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

KNR Constructions Limited's Growth

Over the past three years, KNR Constructions Limited has seen its earnings per share (EPS) grow by 38% per year. Its revenue is down 1.2% over the previous year.

This demonstrates that the company has been improving recently and is good news for the shareholders. While it would be good to see revenue growth, profits matter more in the end. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has KNR Constructions Limited Been A Good Investment?

Since shareholders would have lost about 14% over three years, some KNR Constructions Limited investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Shareholders have not seen their shares grow in value, rather they have seen their shares decline. A huge lag in share price growth when earnings have grown may indicate there could be other issues that are affecting the company at the moment that the market is focused on. Shareholders would be keen to know what's holding the stock back when earnings have grown. At the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.

CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 1 warning sign for KNR Constructions that investors should look into moving forward.

Important note: KNR Constructions is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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.