Shareholders Will Probably Hold Off On Increasing Power Mech Projects Limited's (NSE:POWERMECH) CEO Compensation For The Time Being

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 30 September 2022, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

View our latest analysis for Power Mech Projects

How Does Total Compensation For Sajja Babu Compare With Other Companies In The Industry?

At the time of writing, our data shows that Power Mech Projects Limited has a market capitalization of ₹26b, and reported total annual CEO compensation of ₹53m for the year to March 2022. This means that the compensation hasn't changed much from last year. We think total compensation is more important but our data shows that the CEO salary is lower, at ₹12m.

For comparison, other companies in the same industry with market capitalizations ranging between ₹16b and ₹65b had a median total CEO compensation of ₹30m. Accordingly, our analysis reveals that Power Mech Projects Limited pays Sajja Babu north of the industry median. Furthermore, Sajja Babu directly owns ₹8.3b worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2022	2020	Proportion (2022)
Salary	₹12m	₹12m	23%
Other	₹41m	₹41m	77%
Total Compensation	₹53m	₹53m	100%

On an industry level, around 97% of total compensation represents salary and 3% is other remuneration. In Power Mech Projects' case, non-salary compensation represents a greater slice of total remuneration, in comparison 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.

A Look at Power Mech Projects Limited's Growth Numbers

Power Mech Projects Limited's earnings per share (EPS) grew 5.4% per year over the last three years. Its revenue is up 27% over the last year.

It's great to see that revenue growth is strong. Combined with modest EPS growth, we get a good impression of the company. We wouldn't say this is necessarily top notch growth, but it is certainly promising. 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?

Boasting a total shareholder return of 138% over three years, Power Mech Projects Limited has done well by shareholders. 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...

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. 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.

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

Switching gears from Power Mech Projects, 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.