We Think Shareholders Are Less Likely To Approve A Large Pay Rise For Alankit Limited's (NSE:ALANKIT) CEO For Now

Key Insights

• Alankit to hold its Annual General Meeting on 22nd of August
• CEO Ankit Agarwal's total compensation includes salary of ₹5.89m
• The total compensation is 50% higher than the average for the industry
• Over the past three years, Alankit's EPS grew by 2.5% and over the past three years, the total shareholder return was 74%

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 22nd of August. However, some shareholders may still want to keep CEO compensation within reason.

See our latest analysis for Alankit

How Does Total Compensation For Ankit Agarwal Compare With Other Companies In The Industry?

At the time of writing, our data shows that Alankit Limited has a market capitalization of ₹6.9b, and reported total annual CEO compensation of ₹5.9m for the year to March 2024. This means that the compensation hasn't changed much from last year. It is worth noting that the CEO compensation consists entirely of the salary, worth ₹5.9m.

For comparison, other companies in the Indian Professional Services industry with market capitalizations below ₹17b, reported a median total CEO compensation of ₹3.9m. Accordingly, our analysis reveals that Alankit Limited pays Ankit Agarwal north of the industry median. Furthermore, Ankit Agarwal directly owns ₹2.5m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	₹5.9m	₹5.9m	100%
Other	-	-	-
Total Compensation	₹5.9m	₹5.9m	100%

Talking in terms of the industry, salary represents all of total compensation among the companies we analyzed, while other remuneration is, interestingly, completely ignored. On a company level, Alankit prefers to reward its CEO through a salary, opting not to pay Ankit Agarwal through non-salary benefits. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Alankit Limited's Growth Numbers

Alankit Limited's earnings per share (EPS) grew 2.5% per year over the last three years. In the last year, its revenue is up 53%.

It's great to see that revenue growth is strong. With that in mind, the modestly improving EPS seems positive. We'd stop short of saying the business performance is amazing, but there are enough positives to justify further research, or even adding the stock to your watch-list. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Alankit Limited Been A Good Investment?

Boasting a total shareholder return of 74% over three years, Alankit Limited has done well by shareholders. 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...

Alankit rewards its CEO solely through a salary, ignoring non-salary benefits completely. 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.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We did our research and identified 4 warning signs (and 1 which can't be ignored) in Alankit we think you should know about.

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.