It's Unlikely That Adani Total Gas Limited's (NSE:ATGL) CEO Will See A Huge Pay Rise This Year

Key Insights

• Adani Total Gas will host its Annual General Meeting on 25th of June
• Total pay for CEO Suresh Manglani includes ₹18.0m salary
• The overall pay is 81% above the industry average
• Adani Total Gas' EPS grew by 8.7% over the past three years while total shareholder loss over the past three years was 71%

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The underwhelming share price performance of Adani Total Gas Limited (NSE:ATGL) in the past three years would have disappointed many shareholders. However, what is unusual is that EPS growth has been positive, suggesting that the share price has diverged from fundamentals. These are some of the concerns that shareholders may want to bring up at the next AGM held on 25th of June. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. 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 Adani Total Gas

How Does Total Compensation For Suresh Manglani Compare With Other Companies In The Industry?

According to our data, Adani Total Gas Limited has a market capitalization of ₹716b, and paid its CEO total annual compensation worth ₹82m over the year to March 2025. That's a notable increase of 19% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at ₹18m.

On examining similar-sized companies in the Indian Gas Utilities industry with market capitalizations between ₹346b and ₹1.0t, we discovered that the median CEO total compensation of that group was ₹45m. Hence, we can conclude that Suresh Manglani is remunerated higher than the industry median.

Talking in terms of the industry, salary represented approximately 64% of total compensation out of all the companies we analyzed, while other remuneration made up 36% of the pie. In Adani Total Gas' case, non-salary compensation represents a greater slice of total remuneration, 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.

Adani Total Gas Limited's Growth

Over the past three years, Adani Total Gas Limited has seen its earnings per share (EPS) grow by 8.7% per year. In the last year, its revenue is up 12%.

We would argue that the modest growth in revenue is a notable positive. And the improvement in EPSis modest but respectable. Although we'll stop short of calling the stock a top performer, we think the company has potential. 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 Adani Total Gas Limited Been A Good Investment?

With a total shareholder return of -71% over three years, Adani Total Gas Limited shareholders would by and large be disappointed. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. A huge lag in share price growth when earnings have grown may indicate there could be other issues that are affecting the company at the moment that the market is focused on. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. The upcoming AGM will be a chance for shareholders to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.

Whatever your view on compensation, you might want to check if insiders are buying or selling Adani Total Gas shares (free trial).

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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.