We Think Some Shareholders May Hesitate To Increase Madhucon Projects Limited's (NSE:MADHUCON) CEO Compensation

Key Insights

• Madhucon Projects will host its Annual General Meeting on 29th of September
• Total pay for CEO Nama Seethaiah includes ₹6.00m salary
• The overall pay is 96% above the industry average
• Madhucon Projects' EPS grew by 86% over the past three years while total shareholder return over the past three years was 84%

Under the guidance of CEO Nama Seethaiah, Madhucon Projects Limited (NSE:MADHUCON) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 29th of September. However, some shareholders will still be cautious of paying the CEO excessively.

View our latest analysis for Madhucon Projects

How Does Total Compensation For Nama Seethaiah Compare With Other Companies In The Industry?

Our data indicates that Madhucon Projects Limited has a market capitalization of ₹384m, and total annual CEO compensation was reported as ₹6.0m for the year to March 2023. This was the same amount the CEO received in the prior year. It is worth noting that the CEO compensation consists entirely of the salary, worth ₹6.0m.

In comparison with other companies in the Indian Construction industry with market capitalizations under ₹17b, the reported median total CEO compensation was ₹3.1m. This suggests that Nama Seethaiah is paid more than the median for the industry.

Component	2023	2022	Proportion (2023)
Salary	₹6.0m	₹6.0m	100%
Other	-	-	-
Total Compensation	₹6.0m	₹6.0m	100%

Speaking on an industry level, nearly 99% of total compensation represents salary, while the remainder of 1% is other remuneration. On a company level, Madhucon Projects prefers to reward its CEO through a salary, opting not to pay Nama Seethaiah through non-salary benefits. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Madhucon Projects Limited's Growth Numbers

Madhucon Projects Limited has seen its earnings per share (EPS) increase by 86% a year over the past three years. In the last year, its revenue is up 80%.

This demonstrates that the company has been improving recently and is good news for the shareholders. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Madhucon Projects Limited Been A Good Investment?

Most shareholders would probably be pleased with Madhucon Projects Limited for providing a total return of 84% over three years. 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.

To Conclude...

Madhucon Projects rewards its CEO solely through a salary, ignoring non-salary benefits completely. The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We identified 3 warning signs for Madhucon Projects (2 make us uncomfortable!) that you should be aware of before investing here.

Important note: Madhucon Projects 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.