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

Key Insights

• PNC Infratech's Annual General Meeting to take place on 29th of September
• Salary of ₹34.3m is part of CEO Pradeep Jain's total remuneration
• The total compensation is 79% higher than the average for the industry
• PNC Infratech's EPS grew by 8.9% over the past three years while total shareholder return over the past three years was 139%

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 29th of September. However, some shareholders may still want to keep CEO compensation within reason.

View our latest analysis for PNC Infratech

Comparing PNC Infratech Limited's CEO Compensation With The Industry

Our data indicates that PNC Infratech Limited has a market capitalization of ₹95b, and total annual CEO compensation was reported as ₹123m for the year to March 2023. That's mostly flat as compared to the prior year's compensation. We think total compensation is more important but our data shows that the CEO salary is lower, at ₹34m.

For comparison, other companies in the Indian Construction industry with market capitalizations ranging between ₹33b and ₹133b had a median total CEO compensation of ₹69m. Accordingly, our analysis reveals that PNC Infratech Limited pays Pradeep Jain north of the industry median. What's more, Pradeep Jain holds ₹11b worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2023	2022	Proportion (2023)
Salary	₹34m	₹31m	28%
Other	₹89m	₹89m	72%
Total Compensation	₹123m	₹120m	100%

On an industry level, roughly 99% of total compensation represents salary and 1% is other remuneration. PNC Infratech pays a modest slice of remuneration through salary, as compared to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

PNC Infratech Limited's Growth

PNC Infratech Limited has seen its earnings per share (EPS) increase by 8.9% a year over the past three years. In the last year, its revenue is up 2.5%.

We'd prefer higher revenue growth, but the modest improvement in EPS is good. So there are some positives here, but not enough to earn high praise. 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?

Boasting a total shareholder return of 139% over three years, PNC Infratech 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.

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. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We did our research and spotted 1 warning sign for PNC Infratech that investors should look into moving forward.

Important note: PNC Infratech 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.