Increases to Expleo Solutions Limited's (NSE:EXPLEOSOL) CEO Compensation Might Cool off for now

CEO Balaji Viswanathan has done a decent job of delivering relatively good performance at Expleo Solutions Limited (NSE:EXPLEOSOL) recently. As shareholders go into the upcoming AGM on 26 August 2021, 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.

View our latest analysis for Expleo Solutions

Comparing Expleo Solutions Limited's CEO Compensation With the industry

According to our data, Expleo Solutions Limited has a market capitalization of ₹11b, and paid its CEO total annual compensation worth ₹17m over the year to March 2021. That's just a smallish increase of 7.1% on last year. Notably, the salary which is ₹14.7m, represents most of the total compensation being paid.

For comparison, other companies in the industry with market capitalizations below ₹15b, reported a median total CEO compensation of ₹2.8m. This suggests that Balaji Viswanathan is paid more than the median for the industry.

Component	2021	2020	Proportion (2021)
Salary	₹15m	₹13m	84%
Other	₹2.8m	₹3.4m	16%
Total Compensation	₹17m	₹16m	100%

On an industry level, roughly 99% of total compensation represents salary and 0.7294% is other remuneration. Expleo Solutions sets aside a smaller share of compensation for salary, in comparison to the overall industry. 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 Expleo Solutions Limited's Growth Numbers

Over the past three years, Expleo Solutions Limited has seen its earnings per share (EPS) grow by 18% per year. It achieved revenue growth of 11% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Expleo Solutions Limited Been A Good Investment?

Most shareholders would probably be pleased with Expleo Solutions Limited for providing a total return of 137% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

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, 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.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. 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.
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