Shareholders May Be More Conservative With Omaxe Limited's (NSE:OMAXE) CEO Compensation For Now

Key Insights

• Omaxe will host its Annual General Meeting on 27th of September
• Total pay for CEO Mohit Goel includes ₹22.8m salary
• The overall pay is 120% above the industry average
• Over the past three years, Omaxe's EPS fell by 37% and over the past three years, the total shareholder return was 52%

Performance at Omaxe Limited (NSE:OMAXE) has been reasonably good and CEO Mohit Goel has done a decent job of steering the company in the right direction. 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 27th of September. However, some shareholders will still be cautious of paying the CEO excessively.

View our latest analysis for Omaxe

How Does Total Compensation For Mohit Goel Compare With Other Companies In The Industry?

Our data indicates that Omaxe Limited has a market capitalization of ₹21b, and total annual CEO compensation was reported as ₹23m for the year to March 2024. Notably, that's an increase of 38% over the year before. Notably, the salary of ₹23m is the entirety of the CEO compensation.

On examining similar-sized companies in the Indian Real Estate industry with market capitalizations between ₹8.4b and ₹33b, we discovered that the median CEO total compensation of that group was ₹10m. Hence, we can conclude that Mohit Goel is remunerated higher than the industry median. Furthermore, Mohit Goel directly owns ₹176m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	₹23m	₹17m	100%
Other	-	-	-
Total Compensation	₹23m	₹17m	100%

On an industry level, roughly 99% of total compensation represents salary and 0.5074122% is other remuneration. On a company level, Omaxe prefers to reward its CEO through a salary, opting not to pay Mohit Goel 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.

Omaxe Limited's Growth

Over the last three years, Omaxe Limited has shrunk its earnings per share by 37% per year. In the last year, its revenue is up 101%.

The decrease in EPS could be a concern for some investors. On the other hand, the strong revenue growth suggests the business is growing. It's hard to reach a conclusion about business performance right now. This may be one to watch. 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 Omaxe Limited Been A Good Investment?

Most shareholders would probably be pleased with Omaxe Limited for providing a total return of 52% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

To Conclude...

Omaxe rewards its CEO solely through a salary, ignoring non-salary benefits completely. Some shareholders will be pleased by the relatively good results, however, the results could still be improved. EPS growth is still weak, and until that picks up, shareholders may find it hard to approve a pay rise for the CEO, since they are already paid above the average in their industry.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We identified 2 warning signs for Omaxe (1 shouldn't be ignored!) that you should be aware of before investing here.

Switching gears from Omaxe, 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.