Here's Why Hubtown Limited's (NSE:HUBTOWN) CEO May Deserve A Raise

Key Insights

• Hubtown will host its Annual General Meeting on 25th of September
• CEO Vimal Shah's total compensation includes salary of ₹9.32m
• Total compensation is 38% below industry average
• Hubtown's EPS grew by 52% over the past three years while total shareholder return over the past three years was 388%

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The solid performance at Hubtown Limited (NSE:HUBTOWN) has been impressive and shareholders will probably be pleased to know that CEO Vimal Shah has delivered. At the upcoming AGM on 25th of September, they will get a chance to hear the board review the company results, discuss future strategy and cast their vote on any resolutions such as executive remuneration. Let's take a look at why we think the CEO has done a good job and we'll present the case for a bump in pay.

Check out our latest analysis for Hubtown

Comparing Hubtown Limited's CEO Compensation With The Industry

At the time of writing, our data shows that Hubtown Limited has a market capitalization of ₹45b, and reported total annual CEO compensation of ₹9.3m for the year to March 2025. That's a notable increase of 20% on last year. It is worth noting that the CEO compensation consists entirely of the salary, worth ₹9.3m.

For comparison, other companies in the Indian Real Estate industry with market capitalizations ranging between ₹18b and ₹70b had a median total CEO compensation of ₹15m. That is to say, Vimal Shah is paid under the industry median. What's more, Vimal Shah holds ₹8.4b worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Speaking on an industry level, all of total compensation represents salary, while non-salary remuneration is completely ignored. On a company level, Hubtown prefers to reward its CEO through a salary, opting not to pay Vimal Shah through non-salary benefits. 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.

Hubtown Limited's Growth

Hubtown Limited's earnings per share (EPS) grew 52% per year over the last three years. Its revenue is up 52% 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. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Hubtown Limited Been A Good Investment?

Boasting a total shareholder return of 388% over three years, Hubtown Limited has done well by shareholders. 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...

Hubtown rewards its CEO solely through a salary, ignoring non-salary benefits completely. Some shareholders will probably be more lenient on CEO compensation in the upcoming AGM given the pleasing performance of the company recently. Seeing that earnings growth and share price performance seems to be on the right path, the more pressing focus for shareholders at the AGM may be how the board and management plans to turn the company into a sustainably profitable one.

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 Hubtown that investors should look into moving forward.

Switching gears from Hubtown, 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.