Increases to Madhucon Projects Limited's (NSE:MADHUCON) CEO Compensation Might Cool off for now

CEO Nama Seethaiah has done a decent job of delivering relatively good performance at Madhucon Projects Limited (NSE:MADHUCON) recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 29 September 2022. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

See our latest analysis for Madhucon Projects

Comparing Madhucon Projects Limited's CEO Compensation With The Industry

Our data indicates that Madhucon Projects Limited has a market capitalization of ₹444m, and total annual CEO compensation was reported as ₹6.0m for the year to March 2022. There was no change in the compensation compared to last year. Notably, the salary of ₹6.0m is the entirety of the CEO compensation.

On comparing similar-sized companies in the industry with market capitalizations below ₹16b, we found that the median total CEO compensation was ₹3.1m. Hence, we can conclude that Nama Seethaiah is remunerated higher than the industry median.

Component	2022	2021	Proportion (2022)
Salary	₹6.0m	₹6.0m	100%
Other	-	-	-
Total Compensation	₹6.0m	₹6.0m	100%

On an industry level, roughly 97% of total compensation represents salary and 3% is other remuneration. Speaking on a company level, Madhucon Projects prefers to tread along a traditional path, disbursing all compensation through a salary. 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.

A Look at Madhucon Projects Limited's Growth Numbers

Over the past three years, Madhucon Projects Limited has seen its earnings per share (EPS) grow by 40% per year. It achieved revenue growth of 5.5% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. 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 Madhucon Projects Limited Been A Good Investment?

Madhucon Projects Limited has served shareholders reasonably well, with a total return of 30% over three years. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary...

Madhucon Projects pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 2 warning signs for Madhucon Projects 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.