Shareholders May Not Be So Generous With PNC Infratech Limited's (NSE:PNCINFRA) CEO Compensation And Here's Why

Key Insights

• PNC Infratech to hold its Annual General Meeting on 29th of September
• Total pay for CEO Pradeep Jain includes ₹41.5m salary
• The overall pay is 146% above the industry average
• PNC Infratech's EPS declined by 1.5% over the past three years while total shareholder return over the past three years was 19%

We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

Despite PNC Infratech Limited's (NSE:PNCINFRA) share price growing positively in the past few years, the per-share earnings growth has not grown to investors' expectations, suggesting that there could be other factors at play driving the share price. These concerns will be at the front of shareholders' minds as they go into the AGM coming up on 29th of September. They will be able to influence managerial decisions through the exercise of their voting power on resolutions, such as CEO remuneration and other matters, which may influence future company prospects. From the data that we gathered, we think that shareholders should hold off on a raise on CEO compensation until performance starts to show some improvement.

Check out 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 ₹79b, and reported total annual CEO compensation of ₹128m for the year to March 2025. 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 ₹42m.

On examining similar-sized companies in the Indian Construction industry with market capitalizations between ₹35b and ₹141b, we discovered that the median CEO total compensation of that group was ₹52m. Hence, we can conclude that Pradeep Jain is remunerated higher than the industry median. Moreover, Pradeep Jain also holds ₹9.1b worth of PNC Infratech 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 represents all of total compensation among the companies we analyzed, while other remuneration is, interestingly, completely ignored. PNC Infratech sets aside a smaller share of compensation for salary, in comparison to the overall 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

Over the last three years, PNC Infratech Limited has shrunk its earnings per share by 1.5% per year. Its revenue is down 31% over the previous year.

The lack of EPS growth is certainly uninspiring. And the fact that revenue is down year on year arguably paints an ugly picture. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has PNC Infratech Limited Been A Good Investment?

PNC Infratech Limited has generated a total shareholder return of 19% over three years, so most shareholders would be reasonably content. 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...

While it's true that shareholders have owned decent returns, it's hard to overlook the lack of earnings growth and this makes us question whether these returns will continue. In the upcoming AGM, shareholders will get the opportunity to discuss any concerns with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.

CEO pay is simply one of the many factors that need to be considered while examining business performance. That's why we did our research, and identified 2 warning signs for PNC Infratech (of which 1 is a bit unpleasant!) that you should know about in order to have a holistic understanding of the stock.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.