Shareholders May Not Be So Generous With Total Transport Systems Limited's (NSE:TOTAL) CEO Compensation And Here's Why

Key Insights

• Total Transport Systems' Annual General Meeting to take place on 1st of September
• Salary of ₹13.2m is part of CEO Makarand Pradhan's total remuneration
• The overall pay is 321% above the industry average
• Total Transport Systems' three-year loss to shareholders was 33% while its EPS grew by 2.5% over the past three years

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Shareholders of Total Transport Systems Limited (NSE:TOTAL) will have been dismayed by the negative share price return over the last three years. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. These are some of the concerns that shareholders may want to bring up at the next AGM held on 1st of September. They could also influence management through voting on resolutions such as executive remuneration. We discuss below why we think shareholders should be cautious of approving a raise for the CEO at the moment.

View our latest analysis for Total Transport Systems

Comparing Total Transport Systems Limited's CEO Compensation With The Industry

Our data indicates that Total Transport Systems Limited has a market capitalization of ₹1.2b, and total annual CEO compensation was reported as ₹15m for the year to March 2025. That's a fairly small increase of 7.0% over the previous year. In particular, the salary of ₹13.2m, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar-sized companies in the Indian Logistics industry with market capitalizations below ₹18b, we found that the median total CEO compensation was ₹3.6m. Hence, we can conclude that Makarand Pradhan is remunerated higher than the industry median. Furthermore, Makarand Pradhan directly owns ₹193m worth of shares in the company, implying that they are deeply invested in the company's success.

Talking in terms of the industry, salary represented approximately 93% of total compensation out of all the companies we analyzed, while other remuneration made up 7% of the pie. There isn't a significant difference between Total Transport Systems and the broader market, in terms of salary allocation in the overall compensation package. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Total Transport Systems Limited's Growth Numbers

Over the past three years, Total Transport Systems Limited has seen its earnings per share (EPS) grow by 2.5% per year. Its revenue is up 28% over the last year.

It's hard to interpret the strong revenue growth as anything other than a positive. Combined with modest EPS growth, we get a good impression of the company. So while we'd stop short of saying growth is absolutely outstanding, there are definitely some clear positives! Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Total Transport Systems Limited Been A Good Investment?

The return of -33% over three years would not have pleased Total Transport Systems Limited shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. These concerns should be addressed at the upcoming AGM, where shareholders can question the board and evaluate if their judgement and decision making is still in line with their expectations.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 2 warning signs for Total Transport Systems 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.