Expleo Solutions Limited's (NSE:EXPLEOSOL) CEO Compensation Is Looking A Bit Stretched At The Moment

Key Insights

• Expleo Solutions will host its Annual General Meeting on 29th of August
• Salary of ₹14.7m is part of CEO Balaji Viswanathan's total remuneration
• The overall pay is 150% above the industry average
• Over the past three years, Expleo Solutions' EPS grew by 8.3% and over the past three years, the total shareholder return was 20%

Under the guidance of CEO Balaji Viswanathan, Expleo Solutions Limited (NSE:EXPLEOSOL) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 29th of August. However, some shareholders may still want to keep CEO compensation within reason.

See our latest analysis for Expleo Solutions

How Does Total Compensation For Balaji Viswanathan Compare With Other Companies In The Industry?

Our data indicates that Expleo Solutions Limited has a market capitalization of ₹21b, and total annual CEO compensation was reported as ₹22m for the year to March 2024. We note that's a small decrease of 6.0% on last year. Notably, the salary which is ₹14.7m, represents most of the total compensation being paid.

In comparison with other companies in the Indian IT industry with market capitalizations ranging from ₹8.4b to ₹34b, the reported median CEO total compensation was ₹8.8m. Accordingly, our analysis reveals that Expleo Solutions Limited pays Balaji Viswanathan north of the industry median.

Component	2024	2023	Proportion (2024)
Salary	₹15m	₹17m	67%
Other	₹7.3m	₹6.3m	33%
Total Compensation	₹22m	₹23m	100%

Talking in terms of the industry, salary represented approximately 94% of total compensation out of all the companies we analyzed, while other remuneration made up 6% of the pie. Expleo Solutions sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Expleo Solutions Limited's Growth

Expleo Solutions Limited's earnings per share (EPS) grew 8.3% per year over the last three years. In the last year, its revenue is up 8.4%.

We're not particularly impressed by the revenue growth, but we're happy with the modest EPS growth. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Expleo Solutions Limited Been A Good Investment?

Expleo Solutions Limited has generated a total shareholder return of 20% over three years, so most shareholders would be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

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. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 1 warning sign for Expleo Solutions that you should be aware of before investing.

Switching gears from Expleo Solutions, 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.