Here's Why Shareholders May Want To Be Cautious With Increasing Zen Technologies Limited's (NSE:ZENTEC) CEO Pay Packet

Key Insights

• Zen Technologies to hold its Annual General Meeting on 23rd of August
• Total pay for CEO Ashok Atluri includes ₹21.0m salary
• The total compensation is 960% higher than the average for the industry
• Over the past three years, Zen Technologies' EPS grew by 176% and over the past three years, the total shareholder return was 664%

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Under the guidance of CEO Ashok Atluri, Zen Technologies Limited (NSE:ZENTEC) 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 23rd of August. However, some shareholders may still want to keep CEO compensation within reason.

Check out our latest analysis for Zen Technologies

How Does Total Compensation For Ashok Atluri Compare With Other Companies In The Industry?

Our data indicates that Zen Technologies Limited has a market capitalization of ₹127b, and total annual CEO compensation was reported as ₹129m for the year to March 2025. We note that's an increase of 64% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at ₹21m.

In comparison with other companies in the Indian Aerospace & Defense industry with market capitalizations ranging from ₹88b to ₹280b, the reported median CEO total compensation was ₹12m. Accordingly, our analysis reveals that Zen Technologies Limited pays Ashok Atluri north of the industry median. Moreover, Ashok Atluri also holds ₹27b worth of Zen Technologies stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, roughly 93% of total compensation represents salary and 7% is other remuneration. In Zen Technologies' case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Zen Technologies Limited's Growth

Zen Technologies Limited has seen its earnings per share (EPS) increase by 176% a year over the past three years. It achieved revenue growth of 56% 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. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Zen Technologies Limited Been A Good Investment?

Most shareholders would probably be pleased with Zen Technologies Limited for providing a total return of 664% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar 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 Zen Technologies shares (free trial).

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.