Shareholders Will Probably Hold Off On Increasing Voltamp Transformers Limited's (NSE:VOLTAMP) CEO Compensation For The Time Being

Key Insights

• Voltamp Transformers will host its Annual General Meeting on 29th of July
• Total pay for CEO Kanubhai Patel includes ₹37.0m salary
• The overall pay is 82% above the industry average
• Voltamp Transformers' total shareholder return over the past three years was 708% while its EPS grew by 40% over the past three years

Under the guidance of CEO Kanubhai Patel, Voltamp Transformers Limited (NSE:VOLTAMP) has performed reasonably well recently. 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 29th of July. However, some shareholders will still be cautious of paying the CEO excessively.

Check out our latest analysis for Voltamp Transformers

How Does Total Compensation For Kanubhai Patel Compare With Other Companies In The Industry?

At the time of writing, our data shows that Voltamp Transformers Limited has a market capitalization of ₹119b, and reported total annual CEO compensation of ₹72m for the year to March 2024. We note that's an increase of 20% above last year. We note that the salary of ₹37.0m makes up a sizeable portion of the total compensation received by the CEO.

On comparing similar companies from the Indian Electrical industry with market caps ranging from ₹84b to ₹268b, we found that the median CEO total compensation was ₹40m. Hence, we can conclude that Kanubhai Patel is remunerated higher than the industry median.

Component	2024	2023	Proportion (2024)
Salary	₹37m	₹35m	51%
Other	₹35m	₹26m	49%
Total Compensation	₹72m	₹61m	100%

On an industry level, around 84% of total compensation represents salary and 16% is other remuneration. Voltamp Transformers sets aside a smaller share of compensation for salary, in comparison to the overall industry. 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 Voltamp Transformers Limited's Growth Numbers

Voltamp Transformers Limited has seen its earnings per share (EPS) increase by 40% a year over the past three years. In the last year, its revenue is up 17%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Voltamp Transformers Limited Been A Good Investment?

We think that the total shareholder return of 708%, over three years, would leave most Voltamp Transformers 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.

In Summary...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed 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.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 1 warning sign for Voltamp Transformers that investors should think about before committing capital to this stock.

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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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.

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