We Think Shareholders Are Less Likely To Approve A Large Pay Rise For Hitachi Energy India Limited's (NSE:POWERINDIA) CEO For Now

Key Insights

• Hitachi Energy India to hold its Annual General Meeting on 20th of August
• CEO Nuguri Venu's total compensation includes salary of ₹118.1m
• Total compensation is 96% above industry average
• Hitachi Energy India's total shareholder return over the past three years was 523% while its EPS grew by 48% over the past three years

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Performance at Hitachi Energy India Limited (NSE:POWERINDIA) has been reasonably good and CEO Nuguri Venu 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 20th of August. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

Check out our latest analysis for Hitachi Energy India

How Does Total Compensation For Nuguri Venu Compare With Other Companies In The Industry?

At the time of writing, our data shows that Hitachi Energy India Limited has a market capitalization of ₹941b, and reported total annual CEO compensation of ₹118m for the year to March 2025. That's a notable increase of 50% on last year. Notably, the salary of ₹118m is the entirety of the CEO compensation.

For comparison, other companies in the Indian Electrical industry with market capitalizations above ₹700b, reported a median total CEO compensation of ₹60m. This suggests that Nuguri Venu is paid more than the median for the industry.

On an industry level, roughly 83% of total compensation represents salary and 17% is other remuneration. Speaking on a company level, Hitachi Energy India prefers to tread along a traditional path, disbursing all compensation through a salary. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Hitachi Energy India Limited's Growth

Over the past three years, Hitachi Energy India Limited has seen its earnings per share (EPS) grow by 48% per year. In the last year, its revenue is up 18%.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Hitachi Energy India Limited Been A Good Investment?

Most shareholders would probably be pleased with Hitachi Energy India Limited for providing a total return of 523% over three years. 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.

To Conclude...

Hitachi Energy India rewards its CEO solely through a salary, ignoring non-salary benefits completely. Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus 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.

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 Hitachi Energy India that investors should think about before committing capital to this 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.

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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.