We Take A Look At Why NTPC Limited's (NSE:NTPC) CEO Has Earned Their Pay Packet

Key Insights

• NTPC will host its Annual General Meeting on 29th of August
• CEO Gurdeep Singh's total compensation includes salary of ₹8.25m
• The overall pay is comparable to the industry average
• NTPC's total shareholder return over the past three years was 123% while its EPS grew by 12% over the past three years

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We have been pretty impressed with the performance at NTPC Limited (NSE:NTPC) recently and CEO Gurdeep Singh deserves a mention for their role in it. Coming up to the next AGM on 29th of August, shareholders would be keeping this in mind. The focus will probably be on the future company strategy as shareholders cast their votes on resolutions such as executive remuneration and other matters. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.

View our latest analysis for NTPC

Comparing NTPC Limited's CEO Compensation With The Industry

According to our data, NTPC Limited has a market capitalization of ₹3.3t, and paid its CEO total annual compensation worth ₹17m over the year to March 2025. We note that's an increase of 9.3% above last year. While we always look at total compensation first, our analysis shows that the salary component is less, at ₹8.2m.

On comparing similar companies in the Indian Renewable Energy industry with market capitalizations above ₹700b, we found that the median total CEO compensation was ₹14m. From this we gather that Gurdeep Singh is paid around the median for CEOs in the industry. Furthermore, Gurdeep Singh directly owns ₹2.0m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, around 93% of total compensation represents salary and 7% is other remuneration. In NTPC's 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.

NTPC Limited's Growth

Over the past three years, NTPC Limited has seen its earnings per share (EPS) grow by 12% per year. It achieved revenue growth of 1.5% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has NTPC Limited Been A Good Investment?

Most shareholders would probably be pleased with NTPC Limited for providing a total return of 123% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We did our research and identified 3 warning signs (and 1 which doesn't sit too well with us) in NTPC we think you should know about.

Important note: NTPC is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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.