Why We Think Shareholders May Be Considering Bumping Up Optiemus Infracom Limited's (NSE:OPTIEMUS) CEO Compensation

Shareholders will be pleased by the impressive results for Optiemus Infracom Limited (NSE:OPTIEMUS) recently and CEO Ashok Gupta has played a key role. This would be kept in mind at the upcoming AGM on 29 September 2022 which will be a chance for them to hear the board review the financial results, discuss future company strategy and vote on resolutions such as executive remuneration and other matters. Let's take a look at why we think the CEO has done a good job and we'll present the case for a bump in pay.

See our latest analysis for Optiemus Infracom

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

According to our data, Optiemus Infracom Limited has a market capitalization of ₹21b, and paid its CEO total annual compensation worth ₹9.0m over the year to March 2022. This was the same as last year. Notably, the salary which is ₹4.50m, represents most of the total compensation being paid.

On examining similar-sized companies in the industry with market capitalizations between ₹8.0b and ₹32b, we discovered that the median CEO total compensation of that group was ₹15m. Accordingly, Optiemus Infracom pays its CEO under the industry median. Furthermore, Ashok Gupta directly owns ₹2.7b worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2022	2021	Proportion (2022)
Salary	₹4.5m	₹4.5m	50%
Other	₹4.5m	₹4.5m	50%
Total Compensation	₹9.0m	₹9.0m	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. Optiemus Infracom sets aside a smaller share of compensation for salary, in comparison to the overall industry.

A Look at Optiemus Infracom Limited's Growth Numbers

Optiemus Infracom Limited has seen its earnings per share (EPS) increase by 71% a year over the past three years. In the last year, its revenue is up 192%.

Shareholders would be glad to know that the company has improved itself over the last few years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing 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 Optiemus Infracom Limited Been A Good Investment?

Boasting a total shareholder return of 414% over three years, Optiemus Infracom Limited has done well by shareholders. 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.

To Conclude...

Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 1 warning sign for Optiemus Infracom that investors should look into moving forward.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.