We Think Shareholders Are Less Likely To Approve A Large Pay Rise For Ashiana Housing Limited's (NSE:ASHIANA) CEO For Now

Key Insights

• Ashiana Housing's Annual General Meeting to take place on 25th of September
• Total pay for CEO Ankur Gupta includes ₹18.6m salary
• The overall pay is 134% above the industry average
• Ashiana Housing's EPS grew by 101% over the past three years while total shareholder return over the past three years was 72%

CEO Ankur Gupta has done a decent job of delivering relatively good performance at Ashiana Housing Limited (NSE:ASHIANA) recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 25th of September. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

Check out our latest analysis for Ashiana Housing

Comparing Ashiana Housing Limited's CEO Compensation With The Industry

Our data indicates that Ashiana Housing Limited has a market capitalization of ₹34b, and total annual CEO compensation was reported as ₹34m for the year to March 2024. We note that's an increase of 47% above last year. We note that the salary of ₹18.6m makes up a sizeable portion of the total compensation received by 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. Hence, we can conclude that Ankur Gupta is remunerated higher than the industry median. Furthermore, Ankur Gupta directly owns ₹6.7b worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	₹19m	₹16m	55%
Other	₹15m	₹6.6m	45%
Total Compensation	₹34m	₹23m	100%

Talking in terms of the industry, salary represents all of total compensation among the companies we analyzed, while other remuneration is, interestingly, completely ignored. It's interesting to note that Ashiana Housing 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.

Ashiana Housing Limited's Growth

Ashiana Housing Limited has seen its earnings per share (EPS) increase by 101% a year over the past three years. In the last year, its revenue is up 114%.

Shareholders would be glad to know that the company has improved itself over the last few years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast 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 Ashiana Housing Limited Been A Good Investment?

Most shareholders would probably be pleased with Ashiana Housing Limited for providing a total return of 72% 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...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 1 warning sign for Ashiana Housing that investors should look into moving forward.

Switching gears from Ashiana Housing, 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.