SoftTech Engineers Limited's (NSE:SOFTTECH) CEO Compensation Is Looking A Bit Stretched At The Moment

Key Insights

• SoftTech Engineers' Annual General Meeting to take place on 26th of September
• Salary of ₹2.43m is part of CEO Vijay Gupta's total remuneration
• The overall pay is 103% above the industry average
• Over the past three years, SoftTech Engineers' EPS fell by 35% and over the past three years, the total shareholder return was 103%

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Performance at SoftTech Engineers Limited (NSE:SOFTTECH) has been reasonably good and CEO Vijay Gupta has done a decent job of steering the company in the right direction. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 26th of September. However, some shareholders may still want to keep CEO compensation within reason.

See our latest analysis for SoftTech Engineers

How Does Total Compensation For Vijay Gupta Compare With Other Companies In The Industry?

At the time of writing, our data shows that SoftTech Engineers Limited has a market capitalization of ₹4.8b, and reported total annual CEO compensation of ₹8.1m for the year to March 2025. This was the same amount the CEO received in the prior year. We think total compensation is more important but our data shows that the CEO salary is lower, at ₹2.4m.

In comparison with other companies in the Indian Software industry with market capitalizations under ₹18b, the reported median total CEO compensation was ₹4.0m. Hence, we can conclude that Vijay Gupta is remunerated higher than the industry median. What's more, Vijay Gupta holds ₹941m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Speaking on an industry level, all of total compensation represents salary, while non-salary remuneration is completely ignored. In SoftTech Engineers' case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at SoftTech Engineers Limited's Growth Numbers

SoftTech Engineers Limited has reduced its earnings per share by 35% a year over the last three years. In the last year, its revenue is up 29%.

The reduction in EPS, over three years, is arguably concerning. But in contrast the revenue growth is strong, suggesting future potential for EPS growth. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. 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 SoftTech Engineers Limited Been A Good Investment?

We think that the total shareholder return of 103%, over three years, would leave most SoftTech Engineers Limited shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

The overall company performance has been commendable, however there are still areas for improvement. Until EPS growth picks back up, we think shareholders may find it hard to justify increasing CEO pay given that they are already paid above industry average.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. That's why we did our research, and identified 3 warning signs for SoftTech Engineers (of which 1 is significant!) that you should know about in order to have a holistic understanding of the stock.

Switching gears from SoftTech Engineers, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.