Hi-Tech Pipes Limited's (NSE:HITECH) CEO Compensation Is Looking A Bit Stretched At The Moment

Under the guidance of CEO Ajay Bansal, Hi-Tech Pipes Limited (NSE:HITECH) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 28 September 2022. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

Check out our latest analysis for Hi-Tech Pipes

Comparing Hi-Tech Pipes Limited's CEO Compensation With The Industry

According to our data, Hi-Tech Pipes Limited has a market capitalization of ₹7.1b, and paid its CEO total annual compensation worth ₹9.6m over the year to March 2022. There was no change in the compensation compared to last year. It is worth noting that the CEO compensation consists entirely of the salary, worth ₹9.6m.

On comparing similar-sized companies in the industry with market capitalizations below ₹16b, we found that the median total CEO compensation was ₹3.6m. Hence, we can conclude that Ajay Bansal is remunerated higher than the industry median. What's more, Ajay Bansal holds ₹2.6b worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2022	2021	Proportion (2022)
Salary	₹9.6m	₹9.6m	100%
Other	-	-	-
Total Compensation	₹9.6m	₹9.6m	100%

Speaking on an industry level, all of total compensation represents salary, while non-salary remuneration is completely ignored. At the company level, Hi-Tech Pipes pays Ajay Bansal 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.

Hi-Tech Pipes Limited's Growth

Over the past three years, Hi-Tech Pipes Limited has seen its earnings per share (EPS) grow by 4.5% per year. It achieved revenue growth of 28% over the last year.

It's hard to interpret the strong revenue growth as anything other than a positive. Combined with modest EPS growth, we get a good impression of the company. We wouldn't say this is necessarily top notch growth, but it is certainly promising. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Hi-Tech Pipes Limited Been A Good Investment?

Most shareholders would probably be pleased with Hi-Tech Pipes Limited for providing a total return of 234% over three years. 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...

Hi-Tech Pipes pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. 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. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. That's why we did our research, and identified 4 warning signs for Hi-Tech Pipes (of which 1 is concerning!) that you should know about in order to have a holistic understanding of the stock.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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.