It's Unlikely That CL Educate Limited's (NSE:CLEDUCATE) CEO Will See A Huge Pay Rise This Year

Key Insights

• CL Educate's Annual General Meeting to take place on 17th of September
• Total pay for CEO Gautam Puri includes ₹10.6m salary
• The overall pay is 622% above the industry average
• CL Educate's EPS grew by 46% over the past three years while total shareholder return over the past three years was 230%

Under the guidance of CEO Gautam Puri, CL Educate Limited (NSE:CLEDUCATE) has performed reasonably well recently. As shareholders go into the upcoming AGM on 17th of September, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders will still be cautious of paying the CEO excessively.

View our latest analysis for CL Educate

Comparing CL Educate Limited's CEO Compensation With The Industry

At the time of writing, our data shows that CL Educate Limited has a market capitalization of ₹6.4b, and reported total annual CEO compensation of ₹18m for the year to March 2024. We note that's an increase of 16% above last year. Notably, the salary which is ₹10.6m, represents a considerable chunk of the total compensation being paid.

In comparison with other companies in the India Consumer Services industry with market capitalizations under ₹17b, the reported median total CEO compensation was ₹2.5m. Hence, we can conclude that Gautam Puri is remunerated higher than the industry median. Furthermore, Gautam Puri directly owns ₹1.2b worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	₹11m	₹9.8m	58%
Other	₹7.6m	₹5.8m	42%
Total Compensation	₹18m	₹16m	100%

Speaking on an industry level, all of total compensation represents salary, while non-salary remuneration is completely ignored. In CL Educate's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

CL Educate Limited's Growth

Over the past three years, CL Educate Limited has seen its earnings per share (EPS) grow by 46% per year. Its revenue is up 3.5% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see modest revenue growth, suggesting the underlying business is healthy. 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 CL Educate Limited Been A Good Investment?

Boasting a total shareholder return of 230% over three years, CL Educate Limited has done well by shareholders. 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...

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. 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 compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 2 warning signs for CL Educate that investors should think about before committing capital to this stock.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.