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

Key Insights

• Alankit will host its Annual General Meeting on 23rd of September
• CEO Ankit Agarwal's total compensation includes salary of ₹5.89m
• The overall pay is 31% above the industry average
• Over the past three years, Alankit's EPS grew by 37% and over the past three years, the total shareholder return was 6.4%

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Under the guidance of CEO Ankit Agarwal, Alankit Limited (NSE:ALANKIT) 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 23rd of September. However, some shareholders may still want to keep CEO compensation within reason.

See our latest analysis for Alankit

Comparing Alankit Limited's CEO Compensation With The Industry

According to our data, Alankit Limited has a market capitalization of ₹3.7b, and paid its CEO total annual compensation worth ₹5.9m over the year to March 2025. This was the same as last year. Notably, the salary of ₹5.9m is the entirety of the CEO compensation.

On comparing similar-sized companies in the Indian Professional Services industry with market capitalizations below ₹18b, we found that the median total CEO compensation was ₹4.5m. Hence, we can conclude that Ankit Agarwal is remunerated higher than the industry median. What's more, Ankit Agarwal holds ₹1.4m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, around 92% of total compensation represents salary and 8% is other remuneration. Speaking on a company level, Alankit 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.

Alankit Limited's Growth

Over the past three years, Alankit Limited has seen its earnings per share (EPS) grow by 37% per year. In the last year, its revenue is up 22%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Alankit Limited Been A Good Investment?

Alankit Limited has not done too badly by shareholders, with a total return of 6.4%, over three years. It would be nice to see that metric improve in the future. As a result, investors in the company might be reluctant about agreeing to increase CEO pay in the future, before seeing an improvement on their returns.

To Conclude...

Alankit rewards its CEO solely through a salary, ignoring non-salary benefits completely. 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. 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 2 warning signs for Alankit 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.

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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.