Shareholders Will Probably Hold Off On Increasing Inspirisys Solutions Limited's (NSE:INSPIRISYS) CEO Compensation For The Time Being

Key Insights

• Inspirisys Solutions to hold its Annual General Meeting on 27th of June
• Total pay for CEO Murali Gopalakrishnan includes ₹20.6m salary
• The overall pay is 405% above the industry average
• Over the past three years, Inspirisys Solutions' EPS grew by 101% and over the past three years, the total shareholder return was 68%

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Performance at Inspirisys Solutions Limited (NSE:INSPIRISYS) has been reasonably good and CEO Murali Gopalakrishnan has done a decent job of steering the company in the right direction. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 27th of June. However, some shareholders may still want to keep CEO compensation within reason.

Check out our latest analysis for Inspirisys Solutions

How Does Total Compensation For Murali Gopalakrishnan Compare With Other Companies In The Industry?

At the time of writing, our data shows that Inspirisys Solutions Limited has a market capitalization of ₹4.0b, and reported total annual CEO compensation of ₹21m for the year to March 2025. Notably, that's an increase of 85% over the year before. It is worth noting that the CEO compensation consists entirely of the salary, worth ₹21m.

For comparison, other companies in the Indian IT industry with market capitalizations below ₹17b, reported a median total CEO compensation of ₹4.1m. This suggests that Murali Gopalakrishnan is paid more than the median for the industry.

On an industry level, roughly 93% of total compensation represents salary and 7% is other remuneration. Speaking on a company level, Inspirisys Solutions prefers to tread along a traditional path, disbursing all compensation through a salary. 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 Inspirisys Solutions Limited's Growth Numbers

Inspirisys Solutions Limited has seen its earnings per share (EPS) increase by 101% a year over the past three years. In the last year, its revenue is down 21%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Inspirisys Solutions Limited Been A Good Investment?

We think that the total shareholder return of 68%, over three years, would leave most Inspirisys Solutions Limited shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

Inspirisys Solutions pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We did our research and identified 2 warning signs (and 1 which makes us a bit uncomfortable) in Inspirisys Solutions we think you should know about.

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.