We Think Some Shareholders May Hesitate To Increase PNC Infratech Limited's (NSE:PNCINFRA) CEO Compensation

CEO Pradeep Jain has done a decent job of delivering relatively good performance at PNC Infratech Limited (NSE:PNCINFRA) 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 29 September 2022. However, some shareholders will still be cautious of paying the CEO excessively.

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 ₹69b, and reported total annual CEO compensation of ₹120m for the year to March 2022. That's a notable increase of 8.1% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at ₹31m.

In comparison with other companies in the industry with market capitalizations ranging from ₹32b to ₹128b, the reported median CEO total compensation was ₹48m. Hence, we can conclude that Pradeep Jain is remunerated higher than the industry median. Furthermore, Pradeep Jain directly owns ₹8.0b worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, roughly 97% of total compensation represents salary and 3% is other remuneration. 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.

A Look at PNC Infratech Limited's Growth Numbers

Over the past three years, PNC Infratech Limited has seen its earnings per share (EPS) grow by 19% per year. It achieved revenue growth of 27% over the last year.

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. 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?

We think that the total shareholder return of 44%, over three years, would leave most PNC Infratech Limited shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

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 can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 2 warning signs for PNC Infratech that investors should think about before committing capital to this stock.

Switching gears from PNC Infratech, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.