Shareholders May Not Be So Generous With Nucleus Software Exports Limited's (NSE:NUCLEUS) CEO Compensation And Here's Why

Key Insights

• Nucleus Software Exports will host its Annual General Meeting on 28th of July
• Total pay for CEO Parag Bhise includes ₹49.6m salary
• The overall pay is 155% above the industry average
• Nucleus Software Exports' EPS grew by 62% over the past three years while total shareholder return over the past three years was 175%

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Performance at Nucleus Software Exports Limited (NSE:NUCLEUS) has been reasonably good and CEO Parag Bhise has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 28th of July, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders will still be cautious of paying the CEO excessively.

See our latest analysis for Nucleus Software Exports

How Does Total Compensation For Parag Bhise Compare With Other Companies In The Industry?

At the time of writing, our data shows that Nucleus Software Exports Limited has a market capitalization of ₹29b, and reported total annual CEO compensation of ₹51m for the year to March 2025. That's a notable increase of 75% on last year. In particular, the salary of ₹49.6m, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar companies from the Indian Software industry with market caps ranging from ₹17b to ₹69b, we found that the median CEO total compensation was ₹20m. Hence, we can conclude that Parag Bhise is remunerated higher than the industry median.

Talking in terms of the industry, salary represents all of total compensation among the companies we analyzed, while other remuneration is, interestingly, completely ignored. Nucleus Software Exports pays a high salary, concentrating more on this aspect of compensation in comparison to non-salary pay. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

Nucleus Software Exports Limited's Growth

Nucleus Software Exports Limited has seen its earnings per share (EPS) increase by 62% a year over the past three years. In the last year, its revenue changed by just 0.7%.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Nucleus Software Exports Limited Been A Good Investment?

We think that the total shareholder return of 175%, over three years, would leave most Nucleus Software Exports Limited shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Nucleus Software Exports pays its CEO a majority of compensation through a salary. 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. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the 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 did our research and spotted 2 warning signs for Nucleus Software Exports that investors should look into moving forward.

Important note: Nucleus Software Exports 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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