Increases to CEO Compensation Might Be Put On Hold For Now at Power Mech Projects Limited (NSE:POWERMECH)

Key Insights

• Power Mech Projects to hold its Annual General Meeting on 22nd of September
• CEO Sajja Babu's total compensation includes salary of ₹18.0m
• Total compensation is 321% above industry average
• Power Mech Projects' EPS grew by 26% over the past three years while total shareholder return over the past three years was 257%

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Under the guidance of CEO Sajja Babu, Power Mech Projects Limited (NSE:POWERMECH) has performed reasonably well recently. As shareholders go into the upcoming AGM on 22nd of September, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders will still be cautious of paying the CEO excessively.

See our latest analysis for Power Mech Projects

Comparing Power Mech Projects Limited's CEO Compensation With The Industry

At the time of writing, our data shows that Power Mech Projects Limited has a market capitalization of ₹97b, and reported total annual CEO compensation of ₹225m for the year to March 2025. That's a notable increase of 92% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at ₹18m.

For comparison, other companies in the Indian Construction industry with market capitalizations ranging between ₹35b and ₹141b had a median total CEO compensation of ₹53m. Hence, we can conclude that Sajja Babu is remunerated higher than the industry median. Moreover, Sajja Babu also holds ₹30b worth of Power Mech Projects stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, it's fascinating to see that all of total compensation represents salary and non-salary benefits do not factor into the equation at all. It's interesting to note that Power Mech Projects allocates a smaller portion of compensation to salary in comparison 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.

Power Mech Projects Limited's Growth

Power Mech Projects Limited's earnings per share (EPS) grew 26% per year over the last three years. It achieved revenue growth of 27% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Power Mech Projects Limited Been A Good Investment?

Most shareholders would probably be pleased with Power Mech Projects Limited for providing a total return of 257% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

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, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

Whatever your view on compensation, you might want to check if insiders are buying or selling Power Mech Projects shares (free trial).

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.