We Discuss Why The CEO Of Lloyds Engineering Works Limited (NSE:LLOYDSENGG) Is Due For A Pay Rise

Key Insights

• Lloyds Engineering Works to hold its Annual General Meeting on 21st of August
• Salary of ₹5.99m is part of CEO Mukesh Gupta's total remuneration
• Total compensation is 64% below industry average
• Lloyds Engineering Works' total shareholder return over the past three years was 455% while its EPS grew by 55% over the past three years

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Shareholders will be pleased by the impressive results for Lloyds Engineering Works Limited (NSE:LLOYDSENGG) recently and CEO Mukesh Gupta has played a key role. At the upcoming AGM on 21st of August, they would be interested to hear about the company strategy going forward and get a chance to cast their votes on resolutions such as executive remuneration and other company matters. Let's take a look at why we think the CEO has done a good job and we'll present the case for a bump in pay.

View our latest analysis for Lloyds Engineering Works

Comparing Lloyds Engineering Works Limited's CEO Compensation With The Industry

According to our data, Lloyds Engineering Works Limited has a market capitalization of ₹102b, and paid its CEO total annual compensation worth ₹12m over the year to March 2025. That's a notable increase of 20% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at ₹6.0m.

On examining similar-sized companies in the Indian Machinery industry with market capitalizations between ₹35b and ₹140b, we discovered that the median CEO total compensation of that group was ₹33m. That is to say, Mukesh Gupta is paid under the industry median. Furthermore, Mukesh Gupta directly owns ₹3.5m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, roughly 91% of total compensation represents salary and 9% is other remuneration. Lloyds Engineering Works sets aside a smaller share of compensation for salary, in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Lloyds Engineering Works Limited's Growth

Over the past three years, Lloyds Engineering Works Limited has seen its earnings per share (EPS) grow by 55% per year. It achieved revenue growth of 43% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Lloyds Engineering Works Limited Been A Good Investment?

Most shareholders would probably be pleased with Lloyds Engineering Works Limited for providing a total return of 455% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at 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.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 2 warning signs for Lloyds Engineering Works that you should be aware of before investing.

Important note: Lloyds Engineering Works 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.