Shareholders Will Most Likely Find TeamLease Services Limited's (NSE:TEAMLEASE) CEO Compensation Acceptable

Key Insights

• TeamLease Services' Annual General Meeting to take place on 15th of September
• Total pay for CEO Ashok Kumar Nedurumalli includes ₹8.09m salary
• Total compensation is similar to the industry average
• TeamLease Services' total shareholder return over the past three years was 22% while its EPS grew by 50% over the past three years

Performance at TeamLease Services Limited (NSE:TEAMLEASE) has been reasonably good and CEO Ashok Kumar Nedurumalli has done a decent job of steering the company in the right direction. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 15th of September. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.

View our latest analysis for TeamLease Services

How Does Total Compensation For Ashok Kumar Nedurumalli Compare With Other Companies In The Industry?

At the time of writing, our data shows that TeamLease Services Limited has a market capitalization of ₹45b, and reported total annual CEO compensation of ₹17m for the year to March 2023. That's a modest increase of 6.1% on the prior year. While we always look at total compensation first, our analysis shows that the salary component is less, at ₹8.1m.

On comparing similar companies from the Indian Professional Services industry with market caps ranging from ₹17b to ₹66b, we found that the median CEO total compensation was ₹16m. This suggests that TeamLease Services remunerates its CEO largely in line with the industry average.

Component	2023	2022	Proportion (2023)
Salary	₹8.1m	₹8.1m	49%
Other	₹8.4m	₹7.5m	51%
Total Compensation	₹17m	₹16m	100%

Talking in terms of the industry, salary represents all of total compensation among the companies we analyzed, while other remuneration is, interestingly, completely ignored. TeamLease Services sets aside a smaller share of compensation for salary, in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

TeamLease Services Limited's Growth

TeamLease Services Limited's earnings per share (EPS) grew 50% per year over the last three years. It achieved revenue growth of 17% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has TeamLease Services Limited Been A Good Investment?

TeamLease Services Limited has served shareholders reasonably well, with a total return of 22% over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same 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. Despite the pleasing results, we still think that any proposed increases to CEO compensation will be examined based on a case by case basis and linked to performance outcomes.

If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at TeamLease Services.

Switching gears from TeamLease Services, 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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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.