Genus Power Infrastructures Limited's (NSE:GENUSPOWER) CEO Compensation Looks Acceptable To Us And Here's Why

Key Insights

• Genus Power Infrastructures' Annual General Meeting to take place on 28th of September
• Salary of ₹24.7m is part of CEO Rajendra Agarwal's total remuneration
• The overall pay is comparable to the industry average
• Over the past three years, Genus Power Infrastructures' EPS fell by 17% and over the past three years, the total shareholder return was 954%

Performance at Genus Power Infrastructures Limited (NSE:GENUSPOWER) has been reasonably good and CEO Rajendra Agarwal 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 28th of September. Here is our take on why we think the CEO compensation looks appropriate.

View our latest analysis for Genus Power Infrastructures

Comparing Genus Power Infrastructures Limited's CEO Compensation With The Industry

According to our data, Genus Power Infrastructures Limited has a market capitalization of ₹61b, and paid its CEO total annual compensation worth ₹25m over the year to March 2023. There was no change in the compensation compared to last year. Notably, the salary of ₹25m is the entirety of the CEO compensation.

For comparison, other companies in the Indian Electronic industry with market capitalizations ranging between ₹33b and ₹133b had a median total CEO compensation of ₹21m. This suggests that Genus Power Infrastructures remunerates its CEO largely in line with the industry average. Moreover, Rajendra Agarwal also holds ₹1.5b worth of Genus Power Infrastructures stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2023	2022	Proportion (2023)
Salary	₹25m	₹25m	100%
Other	-	-	-
Total Compensation	₹25m	₹25m	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. Speaking on a company level, Genus Power Infrastructures prefers to tread along a traditional path, disbursing all compensation through a salary. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Genus Power Infrastructures Limited's Growth

Over the last three years, Genus Power Infrastructures Limited has shrunk its earnings per share by 17% per year. It achieved revenue growth of 19% over the last year.

The decrease in EPS could be a concern for some investors. On the other hand, the strong revenue growth suggests the business is growing. It's hard to reach a conclusion about business performance right now. This may be one to watch. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Genus Power Infrastructures Limited Been A Good Investment?

We think that the total shareholder return of 954%, over three years, would leave most Genus Power Infrastructures 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.

To Conclude...

Genus Power Infrastructures rewards its CEO solely through a salary, ignoring non-salary benefits completely. Although the company has performed relatively well, we still think there are some areas that could be improved. Despite robust revenue growth, until EPS growth improves, shareholders may be hesitant to increase CEO pay by too much.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We did our research and identified 2 warning signs (and 1 which is potentially serious) in Genus Power Infrastructures we think you should know about.

Switching gears from Genus Power Infrastructures, 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.