One Point One Solutions Limited's (NSE:ONEPOINT) CEO Looks Due For A Compensation Raise

Key Insights

• One Point One Solutions' Annual General Meeting to take place on 26th of September
• Total pay for CEO Akshay Chhabra includes ₹8.60m salary
• The overall pay is 33% below the industry average
• One Point One Solutions' EPS grew by 89% over the past three years while total shareholder return over the past three years was 1,587%

The impressive results at One Point One Solutions Limited (NSE:ONEPOINT) recently will be great news for shareholders. This would be kept in mind at the upcoming AGM on 26th of September which will be a chance for them to hear the board review the financial results, discuss future company strategy and vote on resolutions such as executive remuneration and other matters. Here we will show why we think CEO compensation is appropriate and discuss the case for a pay rise.

View our latest analysis for One Point One Solutions

Comparing One Point One Solutions Limited's CEO Compensation With The Industry

At the time of writing, our data shows that One Point One Solutions Limited has a market capitalization of ₹15b, and reported total annual CEO compensation of ₹8.6m for the year to March 2024. We note that's an increase of 28% above last year. Notably, the salary of ₹8.6m is the entirety of the CEO compensation.

On examining similar-sized companies in the Indian Professional Services industry with market capitalizations between ₹8.4b and ₹33b, we discovered that the median CEO total compensation of that group was ₹13m. This suggests that Akshay Chhabra is paid below the industry median. Moreover, Akshay Chhabra also holds ₹5.3b worth of One Point One Solutions stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2024	2023	Proportion (2024)
Salary	₹8.6m	₹6.7m	100%
Other	-	-	-
Total Compensation	₹8.6m	₹6.7m	100%

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. At the company level, One Point One Solutions pays Akshay Chhabra solely through a salary, preferring to go down a conventional route. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

One Point One Solutions Limited's Growth

One Point One Solutions Limited's earnings per share (EPS) grew 89% per year over the last three years. In the last year, its revenue is up 38%.

Shareholders would be glad to know that the company has improved itself over the last few years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has One Point One Solutions Limited Been A Good Investment?

Boasting a total shareholder return of 1,587% over three years, One Point One Solutions 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...

One Point One Solutions pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

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 One Point One Solutions that investors should think about before committing capital to this 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.

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