Shareholders May Be More Conservative With Jaiprakash Power Ventures Limited's (NSE:JPPOWER) CEO Compensation For Now

Key Insights

• Jaiprakash Power Ventures' Annual General Meeting to take place on 29th of September
• Total pay for CEO Suren Jain includes ₹16.2m salary
• Total compensation is 323% above industry average
• Over the past three years, Jaiprakash Power Ventures' EPS grew by 101% and over the past three years, the total shareholder return was 373%

CEO Suren Jain has done a decent job of delivering relatively good performance at Jaiprakash Power Ventures Limited (NSE:JPPOWER) recently. As shareholders go into the upcoming AGM on 29th of September, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

Check out our latest analysis for Jaiprakash Power Ventures

Comparing Jaiprakash Power Ventures Limited's CEO Compensation With The Industry

At the time of writing, our data shows that Jaiprakash Power Ventures Limited has a market capitalization of ₹71b, and reported total annual CEO compensation of ₹32m for the year to March 2023. We note that's an increase of 36% above last year. Notably, the salary which is ₹16.2m, represents most of the total compensation being paid.

On comparing similar companies from the Indian Renewable Energy industry with market caps ranging from ₹33b to ₹133b, we found that the median CEO total compensation was ₹7.7m. Hence, we can conclude that Suren Jain is remunerated higher than the industry median. Furthermore, Suren Jain directly owns ₹739k worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2023	2022	Proportion (2023)
Salary	₹16m	₹16m	50%
Other	₹16m	₹7.6m	50%
Total Compensation	₹32m	₹24m	100%

Speaking on an industry level, nearly 71% of total compensation represents salary, while the remainder of 30% is other remuneration. It's interesting to note that Jaiprakash Power Ventures allocates a smaller portion of compensation to salary in comparison to the broader industry.

Jaiprakash Power Ventures Limited's Growth

Jaiprakash Power Ventures Limited's earnings per share (EPS) grew 101% per year over the last three years. It achieved revenue growth of 2.6% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. 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 Jaiprakash Power Ventures Limited Been A Good Investment?

Boasting a total shareholder return of 373% over three years, Jaiprakash Power Ventures Limited has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

To Conclude...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed 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.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We did our research and identified 4 warning signs (and 1 which is a bit unpleasant) in Jaiprakash Power Ventures we think you should know about.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.