Shareholders May Be More Conservative With Om Infra Limited's (NSE:OMINFRAL) CEO Compensation For Now

Key Insights

• Om Infra's Annual General Meeting to take place on 29th of September
• CEO Vikas Kothari's total compensation includes salary of ₹5.80m
• The total compensation is 67% higher than the average for the industry
• Om Infra's EPS grew by 17% over the past three years while total shareholder return over the past three years was 252%

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CEO Vikas Kothari has done a decent job of delivering relatively good performance at Om Infra Limited (NSE:OMINFRAL) 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 29th of September. However, some shareholders will still be cautious of paying the CEO excessively.

See our latest analysis for Om Infra

Comparing Om Infra Limited's CEO Compensation With The Industry

Our data indicates that Om Infra Limited has a market capitalization of ₹12b, and total annual CEO compensation was reported as ₹6.0m for the year to March 2025. We note that's an increase of 20% above last year. We note that the salary portion, which stands at ₹5.80m constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the Indian Construction industry with market capitalizations under ₹18b, the reported median total CEO compensation was ₹3.6m. This suggests that Vikas Kothari is paid more than the median for the industry. Moreover, Vikas Kothari also holds ₹218m worth of Om Infra stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, it's fascinating to see that all of total compensation represents salary and non-salary benefits do not factor into the equation at all. Investors will find it interesting that Om Infra pays the bulk of its rewards through a traditional salary, instead of non-salary benefits. 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.

Om Infra Limited's Growth

Over the past three years, Om Infra Limited has seen its earnings per share (EPS) grow by 17% per year. In the last year, its revenue is down 36%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. 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 Om Infra Limited Been A Good Investment?

Boasting a total shareholder return of 252% over three years, Om Infra Limited has done well by shareholders. 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...

Vikas receives almost all of their compensation through a salary. Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay 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.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 1 warning sign for Om Infra that investors should be aware of in a dynamic business environment.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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.