Here's Why Shareholders May Want To Be Cautious With Increasing Petronet LNG Limited's (NSE:PETRONET) CEO Pay Packet

Key Insights

• Petronet LNG will host its Annual General Meeting on 24th of September
• CEO Akshay Singh's total compensation includes salary of ₹26.4m
• The total compensation is 121% higher than the average for the industry
• Petronet LNG's total shareholder return over the past three years was 53% while its EPS grew by 2.0% over the past three years

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Performance at Petronet LNG Limited (NSE:PETRONET) has been reasonably good and CEO Akshay Singh has done a decent job of steering the company in the right direction. 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 24th of September. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

View our latest analysis for Petronet LNG

How Does Total Compensation For Akshay Singh Compare With Other Companies In The Industry?

At the time of writing, our data shows that Petronet LNG Limited has a market capitalization of ₹421b, and reported total annual CEO compensation of ₹30m for the year to March 2025. That's a notable increase of 16% on last year. In particular, the salary of ₹26.4m, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar companies from the Indian Oil and Gas industry with market caps ranging from ₹176b to ₹562b, we found that the median CEO total compensation was ₹14m. Hence, we can conclude that Akshay Singh is remunerated higher than the industry median. What's more, Akshay Singh holds ₹1.1m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, around 62% of total compensation represents salary and 38% is other remuneration. According to our research, Petronet LNG has allocated a higher percentage of pay to salary in comparison to the wider industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Petronet LNG Limited's Growth Numbers

Over the past three years, Petronet LNG Limited has seen its earnings per share (EPS) grow by 2.0% per year. In the last year, its revenue is down 9.3%.

We would prefer it if there was revenue growth, but it is good to see a modest EPS growth at least. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Petronet LNG Limited Been A Good Investment?

Boasting a total shareholder return of 53% over three years, Petronet LNG 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...

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.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 1 warning sign for Petronet LNG 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.