We Think Shareholders Are Less Likely To Approve A Large Pay Rise For Websol Energy System Limited's (NSE:WEBELSOLAR) CEO For Now

Key Insights

• Websol Energy System to hold its Annual General Meeting on 29th of September
• CEO Sohan Agarwal's total compensation includes salary of ₹24.6m
• The total compensation is 52% higher than the average for the industry
• Websol Energy System's EPS grew by 67% over the past three years while total shareholder return over the past three years was 1,215%

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CEO Sohan Agarwal has done a decent job of delivering relatively good performance at Websol Energy System Limited (NSE:WEBELSOLAR) recently. As shareholders go into the upcoming AGM on 29th of September, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders will still be cautious of paying the CEO excessively.

See our latest analysis for Websol Energy System

Comparing Websol Energy System Limited's CEO Compensation With The Industry

Our data indicates that Websol Energy System Limited has a market capitalization of ₹53b, and total annual CEO compensation was reported as ₹25m for the year to March 2025. Notably, that's an increase of 42% over the year before. It is worth noting that the CEO compensation consists entirely of the salary, worth ₹25m.

For comparison, other companies in the India Semiconductor industry with market capitalizations ranging between ₹35b and ₹141b had a median total CEO compensation of ₹16m. Accordingly, our analysis reveals that Websol Energy System Limited pays Sohan Agarwal north of the industry median. Moreover, Sohan Agarwal also holds ₹4.9b worth of Websol Energy System stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Talking in terms of the industry, salary represents all of total compensation among the companies we analyzed, while other remuneration is, interestingly, completely ignored. At the company level, Websol Energy System pays Sohan Agarwal solely through a salary, preferring to go down a conventional route. 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.

A Look at Websol Energy System Limited's Growth Numbers

Websol Energy System Limited has seen its earnings per share (EPS) increase by 67% a year over the past three years. In the last year, its revenue is up 397%.

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. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Websol Energy System Limited Been A Good Investment?

Boasting a total shareholder return of 1,215% over three years, Websol Energy System 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.

In Summary...

Websol Energy System pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

So you may want to check if insiders are buying Websol Energy System shares with their own money (free access).

Important note: Websol Energy System is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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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.