We Think Shareholders Will Probably Be Generous With Ajmera Realty & Infra India Limited's (NSE:AJMERA) CEO Compensation

Key Insights

• Ajmera Realty & Infra India to hold its Annual General Meeting on 9th of August
• Salary of ₹13.4m is part of CEO Rajnikant Ajmera's total remuneration
• The overall pay is comparable to the industry average
• Ajmera Realty & Infra India's EPS grew by 50% over the past three years while total shareholder return over the past three years was 118%

The performance at Ajmera Realty & Infra India Limited (NSE:AJMERA) has been quite strong recently and CEO Rajnikant Ajmera has played a role in it. Coming up to the next AGM on 9th of August, shareholders would be keeping this in mind. The focus will probably be on the future company strategy as shareholders cast their votes on resolutions such as executive remuneration and other matters. Here is our take on why we think CEO compensation is not extravagant.

Check out our latest analysis for Ajmera Realty & Infra India

How Does Total Compensation For Rajnikant Ajmera Compare With Other Companies In The Industry?

At the time of writing, our data shows that Ajmera Realty & Infra India Limited has a market capitalization of ₹25b, and reported total annual CEO compensation of ₹15m for the year to March 2024. That's a modest increase of 4.3% on the prior year. In particular, the salary of ₹13.4m, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the Indian Real Estate industry with market capitalizations ranging from ₹17b to ₹67b, the reported median CEO total compensation was ₹14m. So it looks like Ajmera Realty & Infra India compensates Rajnikant Ajmera in line with the median for the industry.

Component	2024	2023	Proportion (2024)
Salary	₹13m	₹13m	89%
Other	₹1.7m	₹1.0m	11%
Total Compensation	₹15m	₹14m	100%

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 Ajmera Realty & Infra India 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 Ajmera Realty & Infra India Limited's Growth Numbers

Ajmera Realty & Infra India Limited has seen its earnings per share (EPS) increase by 50% a year over the past three years. It achieved revenue growth of 62% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. 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 Ajmera Realty & Infra India Limited Been A Good Investment?

Most shareholders would probably be pleased with Ajmera Realty & Infra India Limited for providing a total return of 118% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We did our research and identified 2 warning signs (and 1 which can't be ignored) in Ajmera Realty & Infra India we think you should know about.

Important note: Ajmera Realty & Infra India 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.

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