Shareholders May Not Be So Generous With Jaiprakash Power Ventures Limited's (NSE:JPPOWER) CEO Compensation And Here's Why
Key Insights
- Jaiprakash Power Ventures will host its Annual General Meeting on 5th of July
- Salary of ₹17.8m is part of CEO Suren Jain's total remuneration
- The overall pay is 201% above the industry average
- Jaiprakash Power Ventures' total shareholder return over the past three years was 183% while its EPS grew by 98% over the past three years
Under the guidance of CEO Suren Jain, Jaiprakash Power Ventures Limited (NSE:JPPOWER) has performed reasonably well recently. As shareholders go into the upcoming AGM on 5th of July, 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 want to keep CEO compensation within reason.
See our latest analysis for Jaiprakash Power Ventures
Comparing Jaiprakash Power Ventures Limited's CEO Compensation With The Industry
According to our data, Jaiprakash Power Ventures Limited has a market capitalization of ₹124b, and paid its CEO total annual compensation worth ₹30m over the year to March 2025. We note that's an increase of 26% above last year. We note that the salary of ₹17.8m makes up a sizeable portion of the total compensation received by the CEO.
On comparing similar companies from the Indian Renewable Energy industry with market caps ranging from ₹86b to ₹274b, we found that the median CEO total compensation was ₹10.0m. Accordingly, our analysis reveals that Jaiprakash Power Ventures Limited pays Suren Jain north of the industry median. Moreover, Suren Jain also holds ₹1.3m worth of Jaiprakash Power Ventures stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Component | 2025 | 2024 | Proportion (2025) |
Salary | ₹18m | ₹16m | 59% |
Other | ₹12m | ₹7.6m | 41% |
Total Compensation | ₹30m | ₹24m | 100% |
Speaking on an industry level, nearly 86% of total compensation represents salary, while the remainder of 14% is other remuneration. Jaiprakash Power Ventures pays a modest slice of remuneration through salary, as compared to the broader industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
Jaiprakash Power Ventures Limited's Growth
Jaiprakash Power Ventures Limited's earnings per share (EPS) grew 98% per year over the last three years. In the last year, its revenue is down 19%.
This demonstrates that the company has been improving recently and is good news for the shareholders. While it would be good to see revenue growth, profits matter more in the end. 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 Jaiprakash Power Ventures Limited Been A Good Investment?
Most shareholders would probably be pleased with Jaiprakash Power Ventures Limited for providing a total return of 183% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.
Whatever your view on compensation, you might want to check if insiders are buying or selling Jaiprakash Power Ventures shares (free trial).
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.