We Think Shareholders Are Less Likely To Approve A Large Pay Rise For Intense Technologies Limited's (NSE:INTENTECH) CEO For Now

Key Insights

• Intense Technologies will host its Annual General Meeting on 30th of September
• CEO Chidella Shastri's total compensation includes salary of ₹8.71m
• The total compensation is 328% higher than the average for the industry
• Intense Technologies' EPS declined by 1.8% over the past three years while total shareholder return over the past three years was 112%

Under the guidance of CEO Chidella Shastri, Intense Technologies Limited (NSE:INTENTECH) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 30th of September. However, some shareholders may still want to keep CEO compensation within reason.

See our latest analysis for Intense Technologies

How Does Total Compensation For Chidella Shastri Compare With Other Companies In The Industry?

Our data indicates that Intense Technologies Limited has a market capitalization of ₹3.3b, and total annual CEO compensation was reported as ₹18m for the year to March 2024. That's a notable increase of 9.0% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at ₹8.7m.

In comparison with other companies in the Indian Software industry with market capitalizations under ₹17b, the reported median total CEO compensation was ₹4.2m. This suggests that Chidella Shastri is paid more than the median for the industry. Furthermore, Chidella Shastri directly owns ₹352m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	₹8.7m	₹8.3m	48%
Other	₹9.4m	₹8.3m	52%
Total Compensation	₹18m	₹17m	100%

On an industry level, it's fascinating to see that all of total compensation represents salary and non-salary benefits do not factor into the equation at all. Intense Technologies pays a modest slice of remuneration through salary, as compared 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.

Intense Technologies Limited's Growth

Over the last three years, Intense Technologies Limited has shrunk its earnings per share by 1.8% per year. Its revenue is up 34% over the last year.

The decrease in EPS could be a concern for some investors. But on the other hand, revenue growth is strong, suggesting a brighter future. It's hard to reach a conclusion about business performance right now. This may be one to watch. 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 Intense Technologies Limited Been A Good Investment?

We think that the total shareholder return of 112%, over three years, would leave most Intense Technologies Limited shareholders smiling. 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.

In Summary...

Some shareholders will be pleased by the relatively good results, however, the results could still be improved. EPS growth is still weak, and until that picks up, shareholders may find it hard to approve a pay rise for the CEO, since they are already paid above the average in their industry.

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 2 warning signs for Intense Technologies that investors should be aware of in a dynamic business environment.

Important note: Intense Technologies is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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.