Shareholders Will Probably Hold Off On Increasing GMR Airports Infrastructure Limited's (NSE:GMRINFRA) CEO Compensation For The Time Being

Key Insights

• GMR Airports Infrastructure will host its Annual General Meeting on 16th of September
• Salary of ₹26.5m is part of CEO Grandhi Kumar's total remuneration
• Total compensation is 109% above industry average
• GMR Airports Infrastructure's total shareholder return over the past three years was 236% while its EPS grew by 67% over the past three years

CEO Grandhi Kumar has done a decent job of delivering relatively good performance at GMR Airports Infrastructure Limited (NSE:GMRINFRA) recently. 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 16th of September. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

See our latest analysis for GMR Airports Infrastructure

Comparing GMR Airports Infrastructure Limited's CEO Compensation With The Industry

According to our data, GMR Airports Infrastructure Limited has a market capitalization of ₹960b, and paid its CEO total annual compensation worth ₹28m over the year to March 2024. Notably, that's an increase of 18% over the year before. We note that the salary portion, which stands at ₹26.5m constitutes the majority of total compensation received by the CEO.

On comparing similar companies in the India Infrastructure industry with market capitalizations above ₹672b, we found that the median total CEO compensation was ₹13m. Hence, we can conclude that Grandhi Kumar is remunerated higher than the industry median. Moreover, Grandhi Kumar also holds ₹79m worth of GMR Airports Infrastructure stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2024	2023	Proportion (2024)
Salary	₹27m	₹22m	94%
Other	₹1.7m	₹1.7m	6%
Total Compensation	₹28m	₹24m	100%

On an industry level, around 83% of total compensation represents salary and 17% is other remuneration. According to our research, GMR Airports Infrastructure has allocated a higher percentage of pay to salary in comparison to the wider industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

GMR Airports Infrastructure Limited's Growth

Over the past three years, GMR Airports Infrastructure Limited has seen its earnings per share (EPS) grow by 67% per year. It achieved revenue growth of 26% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has GMR Airports Infrastructure Limited Been A Good Investment?

Most shareholders would probably be pleased with GMR Airports Infrastructure Limited for providing a total return of 236% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 2 warning signs for GMR Airports Infrastructure that you should be aware of before investing.

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.