Shareholders May Be More Conservative With PIX Transmissions Limited's (NSE:PIXTRANS) CEO Compensation For Now

Key Insights

• PIX Transmissions will host its Annual General Meeting on 26th of July
• Total pay for CEO Amarpal Sethi includes ₹18.7m salary
• Total compensation is 35% above industry average
• Over the past three years, PIX Transmissions' EPS grew by 18% and over the past three years, the total shareholder return was 75%

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Under the guidance of CEO Amarpal Sethi, PIX Transmissions Limited (NSE:PIXTRANS) has performed reasonably well recently. As shareholders go into the upcoming AGM on 26th of July, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

See our latest analysis for PIX Transmissions

Comparing PIX Transmissions Limited's CEO Compensation With The Industry

According to our data, PIX Transmissions Limited has a market capitalization of ₹21b, and paid its CEO total annual compensation worth ₹23m over the year to March 2025. That's a notable increase of 30% on last year. We note that the salary portion, which stands at ₹18.7m constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the Indian Machinery industry with market capitalizations ranging between ₹8.6b and ₹34b had a median total CEO compensation of ₹17m. Hence, we can conclude that Amarpal Sethi is remunerated higher than the industry median. Moreover, Amarpal Sethi also holds ₹5.9b worth of PIX Transmissions stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Talking in terms of the industry, salary represented approximately 91% of total compensation out of all the companies we analyzed, while other remuneration made up 9% of the pie. PIX Transmissions sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at PIX Transmissions Limited's Growth Numbers

PIX Transmissions Limited has seen its earnings per share (EPS) increase by 18% a year over the past three years. It achieved revenue growth of 19% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing 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 PIX Transmissions Limited Been A Good Investment?

Most shareholders would probably be pleased with PIX Transmissions Limited for providing a total return of 75% 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 up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay 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.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 1 warning sign for PIX Transmissions that you should be aware of before investing.

Important note: PIX Transmissions 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.