This Is The Reason Why We Think Genesys International Corporation Limited's (NSE:GENESYS) CEO Might Be Underpaid

Key Insights

• Genesys International's Annual General Meeting to take place on 30th of September
• CEO Sajid Malik's total compensation includes salary of ₹3.59m
• The overall pay is 32% below the industry average
• Genesys International's total shareholder return over the past three years was 335% while its EPS grew by 69% over the past three years

Shareholders will be pleased by the impressive results for Genesys International Corporation Limited (NSE:GENESYS) recently and CEO Sajid Malik has played a key role. At the upcoming AGM on 30th of September, they will get a chance to hear the board review the company results, discuss future strategy and cast their vote on any resolutions such as executive remuneration. We think the CEO has done a pretty decent job and probably deserves a well-earned pay rise.

See our latest analysis for Genesys International

How Does Total Compensation For Sajid Malik Compare With Other Companies In The Industry?

At the time of writing, our data shows that Genesys International Corporation Limited has a market capitalization of ₹31b, and reported total annual CEO compensation of ₹8.4m for the year to March 2024. That's a notable increase of 31% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at ₹3.6m.

On examining similar-sized companies in the Indian IT industry with market capitalizations between ₹17b and ₹67b, we discovered that the median CEO total compensation of that group was ₹12m. In other words, Genesys International pays its CEO lower than the industry median. Furthermore, Sajid Malik directly owns ₹944m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	₹3.6m	₹3.6m	43%
Other	₹4.8m	₹2.8m	57%
Total Compensation	₹8.4m	₹6.4m	100%

On an industry level, around 93% of total compensation represents salary and 7% is other remuneration. It's interesting to note that Genesys International allocates a smaller portion of compensation to salary in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at Genesys International Corporation Limited's Growth Numbers

Genesys International Corporation Limited's earnings per share (EPS) grew 69% per year over the last three years. In the last year, its revenue is up 27%.

Overall this is a positive result for shareholders, showing that the company has improved in recent 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 Genesys International Corporation Limited Been A Good Investment?

Most shareholders would probably be pleased with Genesys International Corporation Limited for providing a total return of 335% over three years. 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...

The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

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. We've identified 1 warning sign for Genesys International that investors should be aware of in a dynamic business environment.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.