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

Key Insights

• InfoBeans Technologies' Annual General Meeting to take place on 7th of August
• Total pay for CEO Siddharth Sethi includes ₹13.4m salary
• The overall pay is 208% above the industry average
• InfoBeans Technologies' total shareholder return over the past three years was 0.3% while its EPS was down 13% over the past three years

The anaemic share price growth at InfoBeans Technologies Limited (NSE:INFOBEAN) over the past few years has probably not impressed shareholders and may be due to earnings not growing over that period. Some of these issues will occupy shareholders' minds as the AGM rolls around on 7th of August. It would also be an opportunity for them to influence management through exercising their voting power on company resolutions, including CEO and executive remuneration, which could impact on firm performance in the future. From the data that we gathered, we think that shareholders should hold off on a raise on CEO compensation until performance starts to show some improvement.

Check out our latest analysis for InfoBeans Technologies

How Does Total Compensation For Siddharth Sethi Compare With Other Companies In The Industry?

According to our data, InfoBeans Technologies Limited has a market capitalization of ₹11b, and paid its CEO total annual compensation worth ₹13m over the year to March 2024. That's a slight decrease of 6.9% on the prior year. Notably, the salary of ₹13m is the entirety of the CEO compensation.

In comparison with other companies in the Indian Software industry with market capitalizations under ₹17b, the reported median total CEO compensation was ₹4.4m. Accordingly, our analysis reveals that InfoBeans Technologies Limited pays Siddharth Sethi north of the industry median. Moreover, Siddharth Sethi also holds ₹2.6b worth of InfoBeans Technologies stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2024	2023	Proportion (2024)
Salary	₹13m	₹14m	100%
Other	-	-	-
Total Compensation	₹13m	₹14m	100%

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.

A Look at InfoBeans Technologies Limited's Growth Numbers

InfoBeans Technologies Limited has reduced its earnings per share by 13% a year over the last three years. In the last year, its revenue is down 1.8%.

The decline in EPS is a bit concerning. And the impression is worse when you consider revenue is down year-on-year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has InfoBeans Technologies Limited Been A Good Investment?

InfoBeans Technologies Limited has not done too badly by shareholders, with a total return of 0.3%, over three years. It would be nice to see that metric improve in the future. As a result, investors in the company might be reluctant about agreeing to increase CEO pay in the future, before seeing an improvement on their returns.

To Conclude...

InfoBeans Technologies pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. The flat share price growth combined with the the fact that earnings have failed to grow makes us wonder whether the share price will have any further strong momentum. In the upcoming AGM, shareholders will get the opportunity to discuss any concerns with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 1 warning sign for InfoBeans Technologies that investors should look into moving forward.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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.

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