Here's Why PNC Infratech Limited's (NSE:PNCINFRA) CEO Compensation Is The Least Of Shareholders' Concerns

Key Insights

• PNC Infratech to hold its Annual General Meeting on 28th of September
• Salary of ₹37.8m is part of CEO Pradeep Jain's total remuneration
• Total compensation is similar to the industry average
• Over the past three years, PNC Infratech's EPS grew by 36% and over the past three years, the total shareholder return was 18%

Performance at PNC Infratech Limited (NSE:PNCINFRA) has been reasonably good and CEO Pradeep Jain has done a decent job of steering the company in the right direction. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 28th of September. Here is our take on why we think the CEO compensation looks appropriate.

View our latest analysis for PNC Infratech

How Does Total Compensation For Pradeep Jain Compare With Other Companies In The Industry?

At the time of writing, our data shows that PNC Infratech Limited has a market capitalization of ₹111b, and reported total annual CEO compensation of ₹127m for the year to March 2024. That is, the compensation was roughly the same as last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at ₹38m.

On examining similar-sized companies in the Indian Construction industry with market capitalizations between ₹83b and ₹267b, we discovered that the median CEO total compensation of that group was ₹102m. So it looks like PNC Infratech compensates Pradeep Jain in line with the median for the industry. Furthermore, Pradeep Jain directly owns ₹13b worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	₹38m	₹34m	30%
Other	₹89m	₹89m	70%
Total Compensation	₹127m	₹123m	100%

Talking in terms of the industry, salary represented approximately 98% of total compensation out of all the companies we analyzed, while other remuneration made up 2% of the pie. PNC Infratech pays a modest slice of remuneration through salary, as compared to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

PNC Infratech Limited's Growth

PNC Infratech Limited has seen its earnings per share (EPS) increase by 36% a year over the past three years. Its revenue is up 9.1% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has PNC Infratech Limited Been A Good Investment?

PNC Infratech Limited has served shareholders reasonably well, with a total return of 18% over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same 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. However, we still think that any proposed increase in CEO compensation will be examined closely to make sure the compensation is appropriate and linked to performance.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 2 warning signs for PNC Infratech 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.