It's Unlikely That South West Pinnacle Exploration Limited's (NSE:SOUTHWEST) CEO Will See A Huge Pay Rise This Year

Key Insights

• South West Pinnacle Exploration's Annual General Meeting to take place on 27th of September
• CEO Vikas Jain's total compensation includes salary of ₹9.71m
• The total compensation is 188% higher than the average for the industry
• Over the past three years, South West Pinnacle Exploration's EPS fell by 1.2% and over the past three years, the total shareholder return was 38%

Performance at South West Pinnacle Exploration Limited (NSE:SOUTHWEST) has been reasonably good and CEO Vikas Jain has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 27th of September, 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.

View our latest analysis for South West Pinnacle Exploration

Comparing South West Pinnacle Exploration Limited's CEO Compensation With The Industry

Our data indicates that South West Pinnacle Exploration Limited has a market capitalization of ₹3.7b, and total annual CEO compensation was reported as ₹9.7m for the year to March 2024. Notably, that's an increase of 16% over the year before. It is worth noting that the CEO compensation consists entirely of the salary, worth ₹9.7m.

On comparing similar-sized companies in the Indian Metals and Mining industry with market capitalizations below ₹17b, we found that the median total CEO compensation was ₹3.4m. Accordingly, our analysis reveals that South West Pinnacle Exploration Limited pays Vikas Jain north of the industry median. Furthermore, Vikas Jain directly owns ₹1.7b worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	₹9.7m	₹8.4m	100%
Other	-	-	-
Total Compensation	₹9.7m	₹8.4m	100%

On an industry level, around 100% of total compensation represents salary and 0.15505439% is other remuneration. Speaking on a company level, South West Pinnacle Exploration prefers to tread along a traditional path, disbursing all compensation through a salary. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

South West Pinnacle Exploration Limited's Growth

Over the last three years, South West Pinnacle Exploration Limited has shrunk its earnings per share by 1.2% per year. Its revenue is up 15% over the last year.

The decrease in EPS could be a concern for some investors. But in contrast the revenue growth is strong, suggesting future potential for EPS growth. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has South West Pinnacle Exploration Limited Been A Good Investment?

Boasting a total shareholder return of 38% over three years, South West Pinnacle Exploration Limited has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

To Conclude...

South West Pinnacle Exploration pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. The overall company performance has been commendable, however there are still areas for improvement. We still think that some shareholders will be hesitant of increasing CEO pay until EPS growth improves, since they are already paid higher than the industry.

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 South West Pinnacle Exploration (of which 1 shouldn't be ignored!) that you should know about in order to have a holistic understanding of the stock.

Switching gears from South West Pinnacle Exploration, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.