We Think Shareholders May Want To Consider A Review Of AMD Industries Limited's (NSE:AMDIND) CEO Compensation Package

Key Insights

• AMD Industries will host its Annual General Meeting on 30th of September
• Salary of ₹16.0m is part of CEO Adit Gupta's total remuneration
• The total compensation is 266% higher than the average for the industry
• Over the past three years, AMD Industries' EPS fell by 92% and over the past three years, the total loss to shareholders 18%

AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early.

Shareholders will probably not be too impressed with the underwhelming results at AMD Industries Limited (NSE:AMDIND) recently. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 30th of September. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. From our analysis, we think CEO compensation may need a review in light of the recent performance.

View our latest analysis for AMD Industries

How Does Total Compensation For Adit Gupta Compare With Other Companies In The Industry?

According to our data, AMD Industries Limited has a market capitalization of ₹1.2b, and paid its CEO total annual compensation worth ₹16m over the year to March 2025. This was the same as last year. Notably, the salary of ₹16m is the entirety of the CEO compensation.

In comparison with other companies in the Indian Packaging industry with market capitalizations under ₹18b, the reported median total CEO compensation was ₹4.4m. Accordingly, our analysis reveals that AMD Industries Limited pays Adit Gupta north of the industry median. What's more, Adit Gupta holds ₹380m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Speaking on an industry level, all of total compensation represents salary, while non-salary remuneration is completely ignored. At the company level, AMD Industries pays Adit Gupta solely through a salary, preferring to go down a conventional route. 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 AMD Industries Limited's Growth Numbers

AMD Industries Limited has reduced its earnings per share by 92% a year over the last three years. In the last year, its revenue is down 1.6%.

Few shareholders would be pleased to read that EPS have declined. And the impression is worse when you consider revenue is down year-on-year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. 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?

Since shareholders would have lost about 18% over three years, some AMD Industries Limited investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

AMD Industries pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.

CEO pay is simply one of the many factors that need to be considered while examining business performance. That's why we did our research, and identified 4 warning signs for AMD Industries (of which 2 are significant!) that you should know about in order to have a holistic understanding of the 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.

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.