Shareholders Will Probably Hold Off On Increasing MITCON Consultancy & Engineering Services Limited's (NSE:MITCON) CEO Compensation For The Time Being

Key Insights

• MITCON Consultancy & Engineering Services' Annual General Meeting to take place on 27th of September
• Total pay for CEO Anand Chalwade includes ₹15.7m salary
• The total compensation is 335% higher than the average for the industry
• MITCON Consultancy & Engineering Services' EPS grew by 73% over the past three years while total shareholder return over the past three years was 147%

Under the guidance of CEO Anand Chalwade, MITCON Consultancy & Engineering Services Limited (NSE:MITCON) 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 27th of September. However, some shareholders will still be cautious of paying the CEO excessively.

See our latest analysis for MITCON Consultancy & Engineering Services

Comparing MITCON Consultancy & Engineering Services Limited's CEO Compensation With The Industry

At the time of writing, our data shows that MITCON Consultancy & Engineering Services Limited has a market capitalization of ₹1.7b, and reported total annual CEO compensation of ₹16m for the year to March 2024. We note that's an increase of 12% above last year. Notably, the salary of ₹16m is the entirety of the CEO compensation.

On comparing similar-sized companies in the Indian Professional Services industry with market capitalizations below ₹17b, we found that the median total CEO compensation was ₹3.6m. This suggests that Anand Chalwade is paid more than the median for the industry.

Component	2024	2023	Proportion (2024)
Salary	₹16m	₹14m	100%
Other	-	-	-
Total Compensation	₹16m	₹14m	100%

Speaking on an industry level, all of total compensation represents salary, while non-salary remuneration is completely ignored. Speaking on a company level, MITCON Consultancy & Engineering Services prefers to tread along a traditional path, disbursing all compensation through a salary. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at MITCON Consultancy & Engineering Services Limited's Growth Numbers

Over the past three years, MITCON Consultancy & Engineering Services Limited has seen its earnings per share (EPS) grow by 73% per year. Its revenue is up 32% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. 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 MITCON Consultancy & Engineering Services Limited Been A Good Investment?

Boasting a total shareholder return of 147% over three years, MITCON Consultancy & Engineering Services 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...

MITCON Consultancy & Engineering Services 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.

CEO pay is simply one of the many factors that need to be considered while examining business performance. In our study, we found 2 warning signs for MITCON Consultancy & Engineering Services you should be aware of, and 1 of them shouldn't be ignored.

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.