Increases to Alphageo (India) Limited's (NSE:ALPHAGEO) CEO Compensation Might Cool off for now

Key Insights

• Alphageo (India) will host its Annual General Meeting on 29th of September
• Total pay for CEO Dinesh Alla includes ₹12.0m salary
• Total compensation is 217% above industry average
• Alphageo (India)'s EPS grew by 62% over the past three years while total shareholder return over the past three years was 110%

Under the guidance of CEO Dinesh Alla, Alphageo (India) Limited (NSE:ALPHAGEO) has performed reasonably well recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 29th of September. However, some shareholders will still be cautious of paying the CEO excessively.

See our latest analysis for Alphageo (India)

How Does Total Compensation For Dinesh Alla Compare With Other Companies In The Industry?

Our data indicates that Alphageo (India) Limited has a market capitalization of ₹1.9b, and total annual CEO compensation was reported as ₹16m for the year to March 2023. Notably, that's a decrease of 33% over the year before. We note that the salary portion, which stands at ₹12.0m constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the India Energy Services industry with market capitalizations below ₹17b, reported a median total CEO compensation of ₹4.9m. Accordingly, our analysis reveals that Alphageo (India) Limited pays Dinesh Alla north of the industry median. What's more, Dinesh Alla holds ₹536m 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	₹12m	₹12m	77%
Other	₹3.6m	₹11m	23%
Total Compensation	₹16m	₹23m	100%

Talking in terms of the industry, salary represented approximately 96% of total compensation out of all the companies we analyzed, while other remuneration made up 4% of the pie. Alphageo (India) pays a modest slice of remuneration through salary, as compared 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.

A Look at Alphageo (India) Limited's Growth Numbers

Over the past three years, Alphageo (India) Limited has seen its earnings per share (EPS) grow by 62% per year. Its revenue is down 79% over the previous year.

This demonstrates that the company has been improving recently and is good news for the shareholders. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. 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 Alphageo (India) Limited Been A Good Investment?

We think that the total shareholder return of 110%, over three years, would leave most Alphageo (India) Limited shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

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. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We did our research and identified 4 warning signs (and 1 which can't be ignored) in Alphageo (India) we think you should know about.

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.

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.