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

Key Insights

• Linc will host its Annual General Meeting on 28th of August
• CEO Deepak Jalan's total compensation includes salary of ₹13.5m
• The total compensation is 935% higher than the average for the industry
• Over the past three years, Linc's EPS grew by 123% and over the past three years, the total shareholder return was 217%

Under the guidance of CEO Deepak Jalan, Linc Limited (NSE:LINC) 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 28th of August. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

View 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 ₹8.9b, and reported total annual CEO compensation of ₹21m for the year to March 2024. Notably, that's an increase of 14% over the year before. We note that the salary portion, which stands at ₹13.5m constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the Indian Commercial Services industry with market capitalizations below ₹17b, reported a median total CEO compensation of ₹2.0m. This suggests that Deepak Jalan is paid more than the median for the industry. Furthermore, Deepak Jalan directly owns ₹895m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	₹14m	₹11m	64%
Other	₹7.6m	₹7.4m	36%
Total Compensation	₹21m	₹19m	100%

Speaking on an industry level, all of total compensation represents salary, while non-salary remuneration is completely ignored. 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.

A Look at Linc Limited's Growth Numbers

Linc Limited's earnings per share (EPS) grew 123% per year over the last three years. In the last year, its revenue is up 5.1%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Linc Limited Been A Good Investment?

Boasting a total shareholder return of 217% over three years, Linc Limited has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

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.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 1 warning sign for Linc that investors should think about before committing capital to this stock.

Important note: Linc is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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.