Shareholders May Be More Conservative With TD Power Systems Limited's (NSE:TDPOWERSYS) CEO Compensation For Now
Key Insights
- TD Power Systems to hold its Annual General Meeting on 6th of August
- Total pay for CEO Nikhil Kumar includes ₹9.97m salary
- The total compensation is 57% higher than the average for the industry
- Over the past three years, TD Power Systems' EPS grew by 35% and over the past three years, the total shareholder return was 349%
Under the guidance of CEO Nikhil Kumar, TD Power Systems Limited (NSE:TDPOWERSYS) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 6th of August. However, some shareholders may still want to keep CEO compensation within reason.
See our latest analysis for TD Power Systems
How Does Total Compensation For Nikhil Kumar Compare With Other Companies In The Industry?
Our data indicates that TD Power Systems Limited has a market capitalization of ₹81b, and total annual CEO compensation was reported as ₹44m for the year to March 2025. We note that's an increase of 41% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at ₹10.0m.
On examining similar-sized companies in the Indian Electrical industry with market capitalizations between ₹35b and ₹140b, we discovered that the median CEO total compensation of that group was ₹28m. This suggests that Nikhil Kumar is paid more than the median for the industry. Moreover, Nikhil Kumar also holds ₹6.7b worth of TD Power Systems stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
| Component | 2025 | 2024 | Proportion (2025) |
| Salary | ₹10.0m | ₹10.0m | 22% |
| Other | ₹34m | ₹22m | 78% |
| Total Compensation | ₹44m | ₹31m | 100% |
On an industry level, around 83% of total compensation represents salary and 17% is other remuneration. In TD Power Systems' case, non-salary compensation represents a greater slice of total remuneration, 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.
A Look at TD Power Systems Limited's Growth Numbers
Over the past three years, TD Power Systems Limited has seen its earnings per share (EPS) grow by 35% per year. It achieved revenue growth of 28% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has TD Power Systems Limited Been A Good Investment?
We think that the total shareholder return of 349%, over three years, would leave most TD Power Systems Limited shareholders smiling. 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. 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 TD Power Systems that investors should look into moving forward.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.
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