Increases to CEO Compensation Might Be Put On Hold For Now at Hitech Corporation Limited (NSE:HITECHCORP)

Key Insights

• Hitech's Annual General Meeting to take place on 25th of July
• Salary of ₹4.67m is part of CEO Malav Dani's total remuneration
• Total compensation is 122% above industry average
• Over the past three years, Hitech's EPS grew by 9.1% and over the past three years, the total shareholder return was 5.8%

CEO Malav Dani has done a decent job of delivering relatively good performance at Hitech Corporation Limited (NSE:HITECHCORP) recently. As shareholders go into the upcoming AGM on 25th of July, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders will still be cautious of paying the CEO excessively.

Check out our latest analysis for Hitech

How Does Total Compensation For Malav Dani Compare With Other Companies In The Industry?

Our data indicates that Hitech Corporation Limited has a market capitalization of ₹4.2b, and total annual CEO compensation was reported as ₹8.7m for the year to March 2024. This means that the compensation hasn't changed much from last year. In particular, the salary of ₹4.67m, makes up a fairly large portion of the total compensation being paid to the CEO.

For comparison, other companies in the Indian Packaging industry with market capitalizations below ₹17b, reported a median total CEO compensation of ₹3.9m. This suggests that Malav Dani is paid more than the median for the industry. Moreover, Malav Dani also holds ₹13m worth of Hitech stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2024	2023	Proportion (2024)
Salary	₹4.7m	₹5.0m	54%
Other	₹4.0m	₹3.5m	46%
Total Compensation	₹8.7m	₹8.5m	100%

On an industry level, around 77% of total compensation represents salary and 23% is other remuneration. Hitech sets aside a smaller share of compensation for salary, in comparison to the overall industry. 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 Hitech Corporation Limited's Growth Numbers

Hitech Corporation Limited has seen its earnings per share (EPS) increase by 9.1% a year over the past three years. Revenue was pretty flat on last year.

We're not particularly impressed by the revenue growth, but we're happy with the modest EPS growth. So there are some positives here, but not enough to earn high praise. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Hitech Corporation Limited Been A Good Investment?

Hitech Corporation Limited has not done too badly by shareholders, with a total return of 5.8%, over three years. It would be nice to see that metric improve in the future. In light of that, investors might probably want to see an improvement on their returns before they feel generous about increasing the CEO remuneration.

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. 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.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 2 warning signs for Hitech that investors should be aware of in a dynamic business environment.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com