The Compensation For Arihant Superstructures Limited's (NSE:ARIHANTSUP) CEO Looks Deserved And Here's Why

Key Insights

• Arihant Superstructures will host its Annual General Meeting on 20th of September
• CEO Ashokkumar Chhajer's total compensation includes salary of ₹8.71m
• Total compensation is similar to the industry average
• Over the past three years, Arihant Superstructures' EPS grew by 24% and over the past three years, the total shareholder return was 153%

The performance at Arihant Superstructures Limited (NSE:ARIHANTSUP) has been quite strong recently and CEO Ashokkumar Chhajer has played a role in it. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 20th of September. 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.

See our latest analysis for Arihant Superstructures

Comparing Arihant Superstructures Limited's CEO Compensation With The Industry

Our data indicates that Arihant Superstructures Limited has a market capitalization of ₹14b, and total annual CEO compensation was reported as ₹8.7m for the year to March 2024. That's a notable increase of 20% on last year. Notably, the salary of ₹8.7m is the entirety of the CEO compensation.

In comparison with other companies in the Indian Real Estate industry with market capitalizations ranging from ₹8.4b to ₹34b, the reported median CEO total compensation was ₹10m. So it looks like Arihant Superstructures compensates Ashokkumar Chhajer in line with the median for the industry. Furthermore, Ashokkumar Chhajer directly owns ₹6.3b worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	₹8.7m	₹7.3m	100%
Other	-	-	-
Total Compensation	₹8.7m	₹7.3m	100%

Speaking on an industry level, nearly 100% of total compensation represents salary, while the remainder of 0.2537061% is other remuneration. Speaking on a company level, Arihant Superstructures 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.

A Look at Arihant Superstructures Limited's Growth Numbers

Arihant Superstructures Limited has seen its earnings per share (EPS) increase by 24% a year over the past three years. It achieved revenue growth of 11% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Arihant Superstructures Limited Been A Good Investment?

Most shareholders would probably be pleased with Arihant Superstructures Limited for providing a total return of 153% over three years. 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.

To Conclude...

Arihant Superstructures pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus 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.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We identified 2 warning signs for Arihant Superstructures (1 is a bit unpleasant!) that you should be aware of before investing here.

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.