We Think Shareholders Are Less Likely To Approve A Large Pay Rise For Varroc Engineering Limited's (NSE:VARROC) CEO For Now

Key Insights

• Varroc Engineering will host its Annual General Meeting on 21st of August
• Total pay for CEO Tarang Jain includes ₹122.2m salary
• The overall pay is 143% above the industry average
• Varroc Engineering's EPS grew by 51% over the past three years while total shareholder return over the past three years was 54%

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Performance at Varroc Engineering Limited (NSE:VARROC) has been reasonably good and CEO Tarang Jain has done a decent job of steering the company in the right direction. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 21st of August. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

See our latest analysis for Varroc Engineering

Comparing Varroc Engineering Limited's CEO Compensation With The Industry

According to our data, Varroc Engineering Limited has a market capitalization of ₹79b, and paid its CEO total annual compensation worth ₹122m over the year to March 2025. Notably, that's an increase of 91% over the year before. It is worth noting that the CEO compensation consists entirely of the salary, worth ₹122m.

In comparison with other companies in the Indian Auto Components industry with market capitalizations ranging from ₹35b to ₹140b, the reported median CEO total compensation was ₹50m. Accordingly, our analysis reveals that Varroc Engineering Limited pays Tarang Jain north of the industry median. Furthermore, Tarang Jain directly owns ₹49b worth of shares in the company, implying that they are deeply invested in the company's success.

Talking in terms of the industry, salary represented approximately 79% of total compensation out of all the companies we analyzed, while other remuneration made up 21% of the pie. Speaking on a company level, Varroc Engineering prefers to tread along a traditional path, disbursing all compensation through a salary. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Varroc Engineering Limited's Growth

Varroc Engineering Limited's earnings per share (EPS) grew 51% per year over the last three years. It achieved revenue growth of 8.1% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Varroc Engineering Limited Been A Good Investment?

Most shareholders would probably be pleased with Varroc Engineering Limited for providing a total return of 54% 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...

Varroc Engineering pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay 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.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 3 warning signs for Varroc Engineering that investors should be aware of in a dynamic business environment.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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.