Increases to CEO Compensation Might Be Put On Hold For Now at Univastu India Limited (NSE:UNIVASTU)

Key Insights

• Univastu India will host its Annual General Meeting on 26th of September
• Salary of ₹4.20m is part of CEO Pradeep Khandagale's total remuneration
• Total compensation is 44% above industry average
• Univastu India's EPS grew by 19% over the past three years while total shareholder return over the past three years was 183%

CEO Pradeep Khandagale has done a decent job of delivering relatively good performance at Univastu India Limited (NSE:UNIVASTU) recently. As shareholders go into the upcoming AGM on 26th 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 may still be hesitant of being overly generous with CEO compensation.

See our latest analysis for Univastu India

How Does Total Compensation For Pradeep Khandagale Compare With Other Companies In The Industry?

At the time of writing, our data shows that Univastu India Limited has a market capitalization of ₹1.1b, and reported total annual CEO compensation of ₹4.2m for the year to March 2023. This was the same amount the CEO received in the prior year. It is worth noting that the CEO compensation consists entirely of the salary, worth ₹4.2m.

In comparison with other companies in the Indian Construction industry with market capitalizations under ₹17b, the reported median total CEO compensation was ₹2.9m. Accordingly, our analysis reveals that Univastu India Limited pays Pradeep Khandagale north of the industry median. Moreover, Pradeep Khandagale also holds ₹757m worth of Univastu India stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2023	2022	Proportion (2023)
Salary	₹4.2m	₹4.2m	100%
Other	-	-	-
Total Compensation	₹4.2m	₹4.2m	100%

Speaking on an industry level, nearly 98% of total compensation represents salary, while the remainder of 2% is other remuneration. Speaking on a company level, Univastu India 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 Univastu India Limited's Growth Numbers

Univastu India Limited's earnings per share (EPS) grew 19% per year over the last three years. In the last year, its revenue is up 89%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Univastu India Limited Been A Good Investment?

We think that the total shareholder return of 183%, over three years, would leave most Univastu India Limited shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

Univastu India pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. 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.

CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 3 warning signs for Univastu India that investors should look into moving forward.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.