Increases to One Point One Solutions Limited's (NSE:ONEPOINT) CEO Compensation Might Cool off for now

Key Insights

• One Point One Solutions to hold its Annual General Meeting on 22nd of September
• Salary of ₹6.70m is part of CEO Akshay Chhabra's total remuneration
• The total compensation is 119% higher than the average for the industry
• Over the past three years, One Point One Solutions' EPS grew by 119% and over the past three years, the total shareholder return was 1,770%

CEO Akshay Chhabra has done a decent job of delivering relatively good performance at One Point One Solutions Limited (NSE:ONEPOINT) recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 22nd of September. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

See our latest analysis for One Point One Solutions

How Does Total Compensation For Akshay Chhabra Compare With Other Companies In The Industry?

At the time of writing, our data shows that One Point One Solutions Limited has a market capitalization of ₹5.5b, and reported total annual CEO compensation of ₹6.7m for the year to March 2023. Notably, that's an increase of 35% over the year before. It is worth noting that the CEO compensation consists entirely of the salary, worth ₹6.7m.

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 ₹3.1m. This suggests that Akshay Chhabra is paid more than the median for the industry. What's more, Akshay Chhabra holds ₹2.2b worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2023	2022	Proportion (2023)
Salary	₹6.7m	₹5.0m	100%
Other	-	-	-
Total Compensation	₹6.7m	₹5.0m	100%

Speaking on an industry level, all of total compensation represents salary, while non-salary remuneration is completely ignored. On a company level, One Point One Solutions prefers to reward its CEO through a salary, opting not to pay Akshay Chhabra 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 One Point One Solutions Limited's Growth Numbers

One Point One Solutions Limited has seen its earnings per share (EPS) increase by 119% a year over the past three years. It achieved revenue growth of 3.4% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. 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 One Point One Solutions Limited Been A Good Investment?

We think that the total shareholder return of 1,770%, over three years, would leave most One Point One Solutions Limited shareholders smiling. 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...

One Point One Solutions 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, 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.

CEO pay is simply one of the many factors that need to be considered while examining business performance. That's why we did our research, and identified 2 warning signs for One Point One Solutions (of which 1 is a bit unpleasant!) that you should know about in order to have a holistic understanding of the stock.

Switching gears from One Point One Solutions, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.