There Could Be A Chance Hi-Tech Pipes Limited's (NSE:HITECH) CEO Will Have Their Compensation Increased

Key Insights

• Hi-Tech Pipes will host its Annual General Meeting on 21st of September
• Total pay for CEO Ajay Bansal includes ₹14.4m salary
• The overall pay is 41% below the industry average
• Hi-Tech Pipes' total shareholder return over the past three years was 214% while its EPS grew by 3.2% over the past three years

Shareholders will be pleased by the robust performance of Hi-Tech Pipes Limited (NSE:HITECH) recently and this will be kept in mind in the upcoming AGM on 21st of September. They will probably be more interested in hearing the board discuss future initiatives to further improve the business as they vote on resolutions such as executive remuneration. We have prepared some analysis below and we show why we think CEO compensation looks decent with even the possibility for a raise.

View our latest analysis for Hi-Tech Pipes

How Does Total Compensation For Ajay Bansal Compare With Other Companies In The Industry?

At the time of writing, our data shows that Hi-Tech Pipes Limited has a market capitalization of ₹34b, and reported total annual CEO compensation of ₹14m for the year to March 2024. We note that's an increase of 20% above last year. It is worth noting that the CEO compensation consists entirely of the salary, worth ₹14m.

In comparison with other companies in the Indian Metals and Mining industry with market capitalizations ranging from ₹17b to ₹67b, the reported median CEO total compensation was ₹24m. This suggests that Ajay Bansal is paid below the industry median. What's more, Ajay Bansal holds ₹8.6b worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2024	2023	Proportion (2024)
Salary	₹14m	₹12m	100%
Other	-	-	-
Total Compensation	₹14m	₹12m	100%

On an industry level, roughly 100% of total compensation represents salary and 0.12587548% is other remuneration. Speaking on a company level, Hi-Tech Pipes prefers to tread along a traditional path, disbursing all compensation through a salary. 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 Hi-Tech Pipes Limited's Growth Numbers

Hi-Tech Pipes Limited's earnings per share (EPS) grew 3.2% per year over the last three years. It achieved revenue growth of 16% over the last year.

This revenue growth could really point to a brighter future. And the improvement in EPSis modest but respectable. So while we'd stop just short of calling this a top performer, but we think it is well worth watching. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Hi-Tech Pipes Limited Been A Good Investment?

Boasting a total shareholder return of 214% over three years, Hi-Tech Pipes Limited has done well by shareholders. 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 rewards its CEO solely through a salary, ignoring non-salary benefits completely. While the company seems to be headed in the right direction performance-wise, there's always room for improvement. If it manages to keep up the current streak, CEO remuneration could well be one of shareholders' least concerns. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 2 warning signs (and 1 which can't be ignored) in Hi-Tech Pipes we think you should know about.

Important note: Hi-Tech Pipes 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.