This Is Why Prestige Estates Projects Limited's (NSE:PRESTIGE) CEO Compensation Looks Appropriate

Key Insights

• Prestige Estates Projects to hold its Annual General Meeting on 10th of September
• Total pay for CEO Irfan Razack includes ₹36.0m salary
• Total compensation is 56% below industry average
• Prestige Estates Projects' total shareholder return over the past three years was 234% while its EPS was down 28% over the past three years

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The performance at Prestige Estates Projects Limited (NSE:PRESTIGE) has been rather lacklustre of late and shareholders may be wondering what CEO Irfan Razack is planning to do about this. At the next AGM coming up on 10th of September, they can influence managerial decision making through voting on resolutions, including executive remuneration. Voting on executive pay could be a powerful way to influence management, as studies have shown that the right compensation incentives impact company performance. We think CEO compensation looks appropriate given the data we have put together.

See our latest analysis for Prestige Estates Projects

Comparing Prestige Estates Projects Limited's CEO Compensation With The Industry

According to our data, Prestige Estates Projects Limited has a market capitalization of ₹683b, and paid its CEO total annual compensation worth ₹36m over the year to March 2025. We note that's a decrease of 58% compared to last year. It is worth noting that the CEO compensation consists entirely of the salary, worth ₹36m.

On comparing similar companies from the Indian Real Estate industry with market caps ranging from ₹352b to ₹1.1t, we found that the median CEO total compensation was ₹82m. This suggests that Irfan Razack is paid below the industry median. Furthermore, Irfan Razack directly owns ₹15b worth of shares in the company, implying that they are deeply invested in the company's success.

Talking in terms of the industry, salary represents all of total compensation among the companies we analyzed, while other remuneration is, interestingly, completely ignored. On a company level, Prestige Estates Projects prefers to reward its CEO through a salary, opting not to pay Irfan Razack through non-salary benefits. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Prestige Estates Projects Limited's Growth

Over the last three years, Prestige Estates Projects Limited has shrunk its earnings per share by 28% per year. In the last year, its revenue is down 3.3%.

Overall this is not a very positive result for shareholders. And the fact that revenue is down year on year arguably paints an ugly picture. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. 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 Prestige Estates Projects Limited Been A Good Investment?

Boasting a total shareholder return of 234% over three years, Prestige Estates Projects 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...

Prestige Estates Projects pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. While the return to shareholders does look promising, it's hard to ignore the lack of earnings growth and this makes us wonder if these strong returns can continue. These concerns could be addressed to the board and shareholders should revisit their investment thesis to see if it still makes sense.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. In our study, we found 2 warning signs for Prestige Estates Projects you should be aware of, and 1 of them is potentially serious.

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.