Here's Why It's Unlikely That InfoBeans Technologies Limited's (NSE:INFOBEAN) CEO Will See A Pay Rise This Year

Key Insights

• InfoBeans Technologies to hold its Annual General Meeting on 4th of August
• Total pay for CEO Siddharth Sethi includes ₹10.4m salary
• The total compensation is similar to the average for the industry
• Over the past three years, InfoBeans Technologies' EPS fell by 1.6% and over the past three years, the total loss to shareholders 22%

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InfoBeans Technologies Limited (NSE:INFOBEAN) has not performed well recently and CEO Siddharth Sethi will probably need to up their game. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 4th of August. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. We present the case why we think CEO compensation is out of sync with company performance.

View our latest analysis for InfoBeans Technologies

Comparing InfoBeans Technologies Limited's CEO Compensation With The Industry

At the time of writing, our data shows that InfoBeans Technologies Limited has a market capitalization of ₹14b, and reported total annual CEO compensation of ₹10m for the year to March 2025. We note that's a decrease of 23% compared to last year. It is worth noting that the CEO compensation consists entirely of the salary, worth ₹10m.

On comparing similar companies from the Indian Software industry with market caps ranging from ₹8.7b to ₹35b, we found that the median CEO total compensation was ₹10m. This suggests that InfoBeans Technologies remunerates its CEO largely in line with the industry average. Moreover, Siddharth Sethi also holds ₹3.4b worth of InfoBeans Technologies 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, InfoBeans Technologies pays Siddharth Sethi solely through a salary, preferring to go down a conventional route. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

InfoBeans Technologies Limited's Growth

Over the last three years, InfoBeans Technologies Limited has shrunk its earnings per share by 1.6% per year. In the last year, its revenue is up 9.6%.

Its a bit disappointing to see that the company has failed to grow its EPS. The fairly low revenue growth fails to impress given that the EPS is down. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. 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 InfoBeans Technologies Limited Been A Good Investment?

Since shareholders would have lost about 22% over three years, some InfoBeans Technologies Limited investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

InfoBeans Technologies rewards its CEO solely through a salary, ignoring non-salary benefits completely. Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 2 warning signs for InfoBeans Technologies that investors should think about before committing capital to this stock.

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.