Should Shareholders Reconsider TCI Express Limited's (NSE:TCIEXP) CEO Compensation Package?

Key Insights

• TCI Express' Annual General Meeting to take place on 23rd of July
• Total pay for CEO Chander Agarwal includes ₹51.6m salary
• Total compensation is 142% above industry average
• Over the past three years, TCI Express' EPS fell by 13% and over the past three years, the total loss to shareholders 51%

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The results at TCI Express Limited (NSE:TCIEXP) have been quite disappointing recently and CEO Chander Agarwal bears some responsibility for this. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 23rd of July. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. We present the case why we think CEO compensation is out of sync with company performance.

See our latest analysis for TCI Express

Comparing TCI Express Limited's CEO Compensation With The Industry

According to our data, TCI Express Limited has a market capitalization of ₹29b, and paid its CEO total annual compensation worth ₹108m over the year to March 2025. That is, the compensation was roughly the same as last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at ₹52m.

In comparison with other companies in the Indian Logistics industry with market capitalizations ranging from ₹17b to ₹69b, the reported median CEO total compensation was ₹45m. Accordingly, our analysis reveals that TCI Express Limited pays Chander Agarwal north of the industry median. What's more, Chander Agarwal holds ₹963m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Talking in terms of the industry, salary represents all of total compensation among the companies we analyzed, while other remuneration is, interestingly, completely ignored. It's interesting to note that TCI Express allocates a smaller portion of compensation to salary in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at TCI Express Limited's Growth Numbers

TCI Express Limited has reduced its earnings per share by 13% a year over the last three years. It saw its revenue drop 3.6% over the last year.

Overall this is not a very positive result for shareholders. And the fact that revenue is down year on year arguably paints an ugly picture. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 TCI Express Limited Been A Good Investment?

Few TCI Express Limited shareholders would feel satisfied with the return of -51% over three years. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

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 1 warning sign for TCI Express that investors should think about before committing capital to this stock.

Important note: TCI Express is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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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.