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

Key Insights

• Linc will host its Annual General Meeting on 23rd of September
• Total pay for CEO Deepak Jalan includes ₹13.5m salary
• The total compensation is 588% higher than the average for the industry
• Linc's EPS grew by 39% over the past three years while total shareholder return over the past three years was 76%

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CEO Deepak Jalan has done a decent job of delivering relatively good performance at Linc Limited (NSE:LINC) recently. As shareholders go into the upcoming AGM on 23rd 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 will still be cautious of paying the CEO excessively.

Check out our latest analysis for Linc

How Does Total Compensation For Deepak Jalan Compare With Other Companies In The Industry?

At the time of writing, our data shows that Linc Limited has a market capitalization of ₹7.9b, and reported total annual CEO compensation of ₹21m for the year to March 2025. This was the same as last year. In particular, the salary of ₹13.5m, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the Indian Commercial Services industry with market capitalizations below ₹18b, reported a median total CEO compensation of ₹3.1m. This suggests that Deepak Jalan is paid more than the median for the industry. Furthermore, Deepak Jalan directly owns ₹483m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, it's fascinating to see that all of total compensation represents salary and non-salary benefits do not factor into the equation at all. In Linc's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Linc Limited's Growth

Linc Limited has seen its earnings per share (EPS) increase by 39% a year over the past three years. In the last year, its revenue is up 4.6%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Linc Limited Been A Good Investment?

Boasting a total shareholder return of 76% over three years, Linc Limited has done well by shareholders. 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...

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, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 2 warning signs for Linc that investors should look into moving forward.

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.