Shareholders May Not Be So Generous With AMD Industries Limited's (NSE:AMDIND) CEO Compensation And Here's Why

Key Insights

• AMD Industries to hold its Annual General Meeting on 28th of September
• Total pay for CEO Adit Gupta includes ₹11.7m salary
• Total compensation is 344% above industry average
• AMD Industries' EPS grew by 78% over the past three years while total shareholder return over the past three years was 269%

Performance at AMD Industries Limited (NSE:AMDIND) has been reasonably good and CEO Adit Gupta 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 28th of September. However, some shareholders may still want to keep CEO compensation within reason.

View our latest analysis for AMD Industries

Comparing AMD Industries Limited's CEO Compensation With The Industry

At the time of writing, our data shows that AMD Industries Limited has a market capitalization of ₹1.1b, and reported total annual CEO compensation of ₹16m for the year to March 2023. We note that's an increase of 35% above last year. We note that the salary portion, which stands at ₹11.7m constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the Indian Packaging industry with market capitalizations below ₹17b, reported a median total CEO compensation of ₹3.6m. Accordingly, our analysis reveals that AMD Industries Limited pays Adit Gupta north of the industry median. Furthermore, Adit Gupta directly owns ₹344m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2023	2022	Proportion (2023)
Salary	₹12m	₹11m	73%
Other	₹4.3m	₹1.2m	27%
Total Compensation	₹16m	₹12m	100%

Speaking on an industry level, nearly 77% of total compensation represents salary, while the remainder of 23% is other remuneration. Our data reveals that AMD Industries allocates salary more or less in line with the wider market. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at AMD Industries Limited's Growth Numbers

AMD Industries Limited's earnings per share (EPS) grew 78% per year over the last three years. In the last year, its revenue is up 14%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has AMD Industries Limited Been A Good Investment?

We think that the total shareholder return of 269%, over three years, would leave most AMD Industries Limited shareholders smiling. 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.

To Conclude...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus 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.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. In our study, we found 4 warning signs for AMD Industries you should be aware of, and 1 of them is a bit unpleasant.

Important note: AMD Industries 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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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.