Why We Think Salasar Techno Engineering Limited's (NSE:SALASAR) CEO Compensation Is Not Excessive At All

Key Insights

• Salasar Techno Engineering to hold its Annual General Meeting on 27th of September
• CEO Alok Kumar's total compensation includes salary of ₹12.5m
• The total compensation is similar to the average for the industry
• Over the past three years, Salasar Techno Engineering's EPS fell by 23% and over the past three years, the total shareholder return was 56%

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Performance at Salasar Techno Engineering Limited (NSE:SALASAR) has been reasonably good and CEO Alok Kumar has done a decent job of steering the company in the right direction. 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 27th of September. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.

View our latest analysis for Salasar Techno Engineering

How Does Total Compensation For Alok Kumar Compare With Other Companies In The Industry?

At the time of writing, our data shows that Salasar Techno Engineering Limited has a market capitalization of ₹17b, and reported total annual CEO compensation of ₹13m for the year to March 2025. That's a notable increase of 19% on last year. It is worth noting that the CEO compensation consists entirely of the salary, worth ₹13m.

On examining similar-sized companies in the Indian Construction industry with market capitalizations between ₹8.8b and ₹35b, we discovered that the median CEO total compensation of that group was ₹11m. So it looks like Salasar Techno Engineering compensates Alok Kumar in line with the median for the industry. What's more, Alok Kumar holds ₹861m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Talking in terms of the industry, salary represents all of total compensation among the companies we analyzed, while other remuneration is, interestingly, completely ignored. Speaking on a company level, Salasar Techno Engineering prefers to tread along a traditional path, disbursing all compensation through a salary. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at Salasar Techno Engineering Limited's Growth Numbers

Salasar Techno Engineering Limited has reduced its earnings per share by 23% a year over the last three years. It achieved revenue growth of 17% over the last year.

The reduction in EPS, over three years, is arguably concerning. But on the other hand, revenue growth is strong, suggesting a brighter future. It's hard to reach a conclusion about business performance right now. This may be one to watch. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Salasar Techno Engineering Limited Been A Good Investment?

Most shareholders would probably be pleased with Salasar Techno Engineering Limited for providing a total return of 56% 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...

Salasar Techno Engineering pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. The overall company performance has been commendable, however there are still areas for improvement. Despite robust revenue growth, until EPS growth improves, shareholders may be hesitant to increase CEO pay by too much.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We identified 2 warning signs for Salasar Techno Engineering (1 is concerning!) that you should be aware of before investing here.

Switching gears from Salasar Techno Engineering, 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.