Indian Energy Exchange Limited's (NSE:IEX) CEO Looks Due For A Compensation Raise

Key Insights

• Indian Energy Exchange's Annual General Meeting to take place on 6th of August
• Total pay for CEO Satyanarayan Goel includes ₹22.5m salary
• Total compensation is 42% below industry average
• Indian Energy Exchange's total shareholder return over the past three years was 37% while its EPS grew by 18% over the past three years

Shareholders will be pleased by the impressive results for Indian Energy Exchange Limited (NSE:IEX) recently and CEO Satyanarayan Goel has played a key role. At the upcoming AGM on 6th of August, they would be interested to hear about the company strategy going forward and get a chance to cast their votes on resolutions such as executive remuneration and other company matters. Here we will show why we think CEO compensation is appropriate and discuss the case for a pay rise.

Check out our latest analysis for Indian Energy Exchange

Comparing Indian Energy Exchange Limited's CEO Compensation With The Industry

At the time of writing, our data shows that Indian Energy Exchange Limited has a market capitalization of ₹168b, and reported total annual CEO compensation of ₹40m for the year to March 2024. We note that's an increase of 13% above last year. Notably, the salary which is ₹22.5m, represents a considerable chunk of the total compensation being paid.

On examining similar-sized companies in the Indian Capital Markets industry with market capitalizations between ₹84b and ₹268b, we discovered that the median CEO total compensation of that group was ₹69m. This suggests that Satyanarayan Goel is paid below the industry median.

Component	2024	2023	Proportion (2024)
Salary	₹23m	₹20m	57%
Other	₹17m	₹15m	43%
Total Compensation	₹40m	₹35m	100%

Speaking on an industry level, all of total compensation represents salary, while non-salary remuneration is completely ignored. Indian Energy Exchange sets aside a smaller share of compensation for salary, in comparison to the overall industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at Indian Energy Exchange Limited's Growth Numbers

Over the past three years, Indian Energy Exchange Limited has seen its earnings per share (EPS) grow by 18% per year. In the last year, its revenue is up 18%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Indian Energy Exchange Limited Been A Good Investment?

We think that the total shareholder return of 37%, over three years, would leave most Indian Energy Exchange 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...

The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 1 warning sign for Indian Energy Exchange that investors should be aware of in a dynamic business environment.

Important note: Indian Energy Exchange is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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