It Looks Like India Power Corporation Limited's (NSE:DPSCLTD) CEO May Expect Their Salary To Be Put Under The Microscope

Key Insights

• India Power to hold its Annual General Meeting on 19th of September
• Total pay for CEO Raghav Kanoria includes ₹22.2m salary
• The total compensation is 1,140% higher than the average for the industry
• Over the past three years, India Power's EPS fell by 13% and over the past three years, the total loss to shareholders 15%

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Shareholders will probably not be too impressed with the underwhelming results at India Power Corporation Limited (NSE:DPSCLTD) recently. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 19th of September. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. We present the case why we think CEO compensation is out of sync with company performance.

See our latest analysis for India Power

How Does Total Compensation For Raghav Kanoria Compare With Other Companies In The Industry?

At the time of writing, our data shows that India Power Corporation Limited has a market capitalization of ₹12b, and reported total annual CEO compensation of ₹22m for the year to March 2025. Notably, that's an increase of 29% over the year before. It is worth noting that the CEO compensation consists entirely of the salary, worth ₹22m.

For comparison, other companies in the Indian Electric Utilities industry with market capitalizations below ₹18b, reported a median total CEO compensation of ₹1.8m. Hence, we can conclude that Raghav Kanoria is remunerated higher than the industry median.

Talking in terms of the industry, salary represented approximately 70% of total compensation out of all the companies we analyzed, while other remuneration made up 30% of the pie. Speaking on a company level, India Power prefers to tread along a traditional path, disbursing all compensation through a salary. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at India Power Corporation Limited's Growth Numbers

Over the last three years, India Power Corporation Limited has shrunk its earnings per share by 13% per year. Its revenue is down 4.7% over the previous year.

Few shareholders would be pleased to read that EPS have declined. And the impression is worse when you consider revenue is down year-on-year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 India Power Corporation Limited Been A Good Investment?

Given the total shareholder loss of 15% over three years, many shareholders in India Power Corporation Limited are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

India Power pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. That's why we did our research, and identified 3 warning signs for India Power (of which 1 is potentially serious!) that you should know about in order to have a holistic understanding of the stock.

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.