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

Key Insights

• Arihant Superstructures' Annual General Meeting to take place on 27th of September
• Salary of ₹9.50m is part of CEO Ashokkumar Chhajer's total remuneration
• Total compensation is similar to the industry average
• Over the past three years, Arihant Superstructures' EPS grew by 18% and over the past three years, the total shareholder return was 74%

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It would be hard to discount the role that CEO Ashokkumar Chhajer has played in delivering the impressive results at Arihant Superstructures Limited (NSE:ARIHANTSUP) recently. Shareholders will have this at the front of their minds in the upcoming AGM on 27th of September. It is likely that the focus will be on company strategy going forward as shareholders hear from the board and 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 ₹17b, and total annual CEO compensation was reported as ₹9.5m for the year to March 2025. That's a notable increase of 9.0% on last year. It is worth noting that the CEO compensation consists entirely of the salary, worth ₹9.5m.

On examining similar-sized companies in the Indian Real Estate industry with market capitalizations between ₹8.8b and ₹35b, we discovered that the median CEO total compensation of that group was ₹10m. From this we gather that Ashokkumar Chhajer is paid around the median for CEOs in the industry. Moreover, Ashokkumar Chhajer also holds ₹7.5b worth of Arihant Superstructures stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Speaking on an industry level, all of total compensation represents salary, while non-salary remuneration is completely ignored. On a company level, Arihant Superstructures prefers to reward its CEO through a salary, opting not to pay Ashokkumar Chhajer through non-salary benefits. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Arihant Superstructures Limited's Growth

Arihant Superstructures Limited has seen its earnings per share (EPS) increase by 18% a year over the past three years. It achieved revenue growth of 15% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. Although we don't have analyst forecasts, you might want to assess this data-rich visualization 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 74% 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...

Arihant Superstructures rewards its CEO solely through a salary, ignoring non-salary benefits completely. Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and 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 did our research and identified 2 warning signs (and 1 which doesn't sit too well with us) in Arihant Superstructures we think you should know about.

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.