We Discuss Why Hitech Corporation Limited's (NSE:HITECHCORP) CEO Compensation May Be Closely Reviewed

Key Insights

• Hitech's Annual General Meeting to take place on 24th of July
• Total pay for CEO Malav Dani includes ₹4.91m salary
• Total compensation is 31% above industry average
• Hitech's three-year loss to shareholders was 8.2% while its EPS was down 38% over the past three years

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Shareholders will probably not be too impressed with the underwhelming results at Hitech Corporation Limited (NSE:HITECHCORP) recently. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 24th of July. 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. We present the case why we think CEO compensation is out of sync with company performance.

See our latest analysis for Hitech

Comparing Hitech Corporation Limited's CEO Compensation With The Industry

Our data indicates that Hitech Corporation Limited has a market capitalization of ₹3.6b, and total annual CEO compensation was reported as ₹6.3m for the year to March 2025. That's a notable decrease of 27% on last year. We note that the salary portion, which stands at ₹4.91m 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 ₹4.8m. Hence, we can conclude that Malav Dani is remunerated higher than the industry median. What's more, Malav Dani holds ₹11m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, it's fascinating to see that all of total compensation represents salary and non-salary benefits do not factor into the equation at all. It's interesting to note that Hitech allocates a smaller portion of compensation to salary in comparison to the broader 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

Over the last three years, Hitech Corporation Limited has shrunk its earnings per share by 38% per year. Revenue was pretty flat on last year.

Few shareholders would be pleased to read that EPS have declined. And the flat revenue is seriously uninspiring. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Hitech Corporation Limited Been A Good Investment?

With a three year total loss of 8.2% for the shareholders, Hitech Corporation Limited would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 3 warning signs for Hitech that investors should think about before committing capital to this 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.

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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.