Shareholders May Be More Conservative With JK Tyre & Industries Limited's (NSE:JKTYRE) CEO Compensation For Now

Key Insights

• JK Tyre & Industries will host its Annual General Meeting on 7th of August
• CEO Raghupati Singhania's total compensation includes salary of ₹117.3m
• The overall pay is 431% above the industry average
• Over the past three years, JK Tyre & Industries' EPS grew by 28% and over the past three years, the total shareholder return was 164%

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CEO Raghupati Singhania has done a decent job of delivering relatively good performance at JK Tyre & Industries Limited (NSE:JKTYRE) recently. As shareholders go into the upcoming AGM on 7th of August, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders will still be cautious of paying the CEO excessively.

Check out our latest analysis for JK Tyre & Industries

Comparing JK Tyre & Industries Limited's CEO Compensation With The Industry

At the time of writing, our data shows that JK Tyre & Industries Limited has a market capitalization of ₹92b, and reported total annual CEO compensation of ₹303m for the year to March 2025. Notably, that's a decrease of 27% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at ₹117m.

For comparison, other companies in the Indian Auto Components industry with market capitalizations ranging between ₹35b and ₹140b had a median total CEO compensation of ₹57m. This suggests that Raghupati Singhania is paid more than the median for the industry. Moreover, Raghupati Singhania also holds ₹643m worth of JK Tyre & Industries stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, roughly 78% of total compensation represents salary and 22% is other remuneration. JK Tyre & Industries pays a modest slice of remuneration through salary, as compared to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

JK Tyre & Industries Limited's Growth

JK Tyre & Industries Limited's earnings per share (EPS) grew 28% per year over the last three years. Its revenue is down 2.1% over the previous year.

Shareholders would be glad to know that the company has improved itself over the last few years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has JK Tyre & Industries Limited Been A Good Investment?

Most shareholders would probably be pleased with JK Tyre & Industries Limited for providing a total return of 164% over three years. 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.

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.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We identified 3 warning signs for JK Tyre & Industries (1 is potentially serious!) that you should be aware of before investing here.

Switching gears from JK Tyre & Industries, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.