Increases to Kalpataru Projects International Limited's (NSE:KPIL) CEO Compensation Might Cool off for now

Key Insights

• Kalpataru Projects International will host its Annual General Meeting on 10th of July
• CEO Manish Mohnot's total compensation includes salary of ₹49.9m
• The total compensation is 158% higher than the average for the industry
• Kalpataru Projects International's total shareholder return over the past three years was 250% while its EPS was down 1.9% over the past three years

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Kalpataru Projects International Limited (NSE:KPIL) has exhibited strong share price growth in the past few years. However, its earnings growth has not kept up, suggesting that there may be something amiss. Some of these issues will occupy shareholders' minds as the AGM rolls around on 10th of July. It would also be an opportunity for them to influence management through exercising their voting power on company resolutions, including CEO and executive remuneration, which could impact on firm performance in the future. In our analysis below, we show why shareholders may consider holding off a raise for the CEO's compensation until company performance improves.

See our latest analysis for Kalpataru Projects International

How Does Total Compensation For Manish Mohnot Compare With Other Companies In The Industry?

At the time of writing, our data shows that Kalpataru Projects International Limited has a market capitalization of ₹205b, and reported total annual CEO compensation of ₹218m for the year to March 2025. Notably, that's an increase of 14% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at ₹50m.

On examining similar-sized companies in the Indian Construction industry with market capitalizations between ₹85b and ₹273b, we discovered that the median CEO total compensation of that group was ₹84m. Hence, we can conclude that Manish Mohnot is remunerated higher than the industry median.

On an industry level, around 100% of total compensation represents salary and 0.14803849% is other remuneration. In Kalpataru Projects International's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Kalpataru Projects International Limited's Growth

Over the last three years, Kalpataru Projects International Limited has shrunk its earnings per share by 1.9% per year. In the last year, its revenue is up 14%.

The lack of EPS growth is certainly uninspiring. And while it's good to see some good revenue growth recently, the growth isn't really fast enough for us to put aside my concerns around EPS. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Kalpataru Projects International Limited Been A Good Investment?

Boasting a total shareholder return of 250% over three years, Kalpataru Projects International 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...

Despite the strong returns on shareholders' investments, the fact that earnings have failed to grow makes us skeptical about the stock keeping up its current momentum. Shareholders should make the most of the coming opportunity to question the board on key concerns they may have and revisit their investment thesis with regards to the company.

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 Kalpataru Projects International that investors should look into moving forward.

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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.