AVG Logistics Limited's (NSE:AVG) CEO Compensation Is Looking A Bit Stretched At The Moment

Key Insights

• AVG Logistics' Annual General Meeting to take place on 29th of September
• Total pay for CEO Sanjay Gupta includes ₹7.80m salary
• Total compensation is 193% above industry average
• Over the past three years, AVG Logistics' EPS grew by 41% and over the past three years, the total shareholder return was 444%

Performance at AVG Logistics Limited (NSE:AVG) has been reasonably good and CEO Sanjay Gupta has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 29th of September, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

View our latest analysis for AVG Logistics

Comparing AVG Logistics Limited's CEO Compensation With The Industry

According to our data, AVG Logistics Limited has a market capitalization of ₹3.5b, and paid its CEO total annual compensation worth ₹7.8m over the year to March 2023. That's a fairly small increase of 4.7% over the previous year. Notably, the salary of ₹7.8m is the entirety of the CEO compensation.

In comparison with other companies in the India Transportation industry with market capitalizations under ₹17b, the reported median total CEO compensation was ₹2.7m. Accordingly, our analysis reveals that AVG Logistics Limited pays Sanjay Gupta north of the industry median. Furthermore, Sanjay Gupta directly owns ₹519m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2023	2022	Proportion (2023)
Salary	₹7.8m	₹7.5m	100%
Other	-	-	-
Total Compensation	₹7.8m	₹7.5m	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. At the company level, AVG Logistics pays Sanjay Gupta solely through a salary, preferring to go down a conventional route. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

AVG Logistics Limited's Growth

AVG Logistics Limited's earnings per share (EPS) grew 41% per year over the last three years. The trailing twelve months of revenue was pretty much the same as the prior period.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. 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 AVG Logistics Limited Been A Good Investment?

Most shareholders would probably be pleased with AVG Logistics Limited for providing a total return of 444% over three years. 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...

AVG Logistics pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

CEO pay is simply one of the many factors that need to be considered while examining business performance. In our study, we found 3 warning signs for AVG Logistics you should be aware of, and 1 of them is a bit concerning.

Switching gears from AVG Logistics, 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.