We Think Shareholders Are Less Likely To Approve A Large Pay Rise For Wheels India Limited's (NSE:WHEELS) CEO For Now

Key Insights

• Wheels India's Annual General Meeting to take place on 17th of July
• CEO Srivats Ram's total compensation includes salary of ₹27.5m
• Total compensation is 113% above industry average
• Wheels India's EPS grew by 13% over the past three years while total shareholder return over the past three years was 22%

This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.

CEO Srivats Ram has done a decent job of delivering relatively good performance at Wheels India Limited (NSE:WHEELS) recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 17th of July. However, some shareholders may still want to keep CEO compensation within reason.

View our latest analysis for Wheels India

How Does Total Compensation For Srivats Ram Compare With Other Companies In The Industry?

Our data indicates that Wheels India Limited has a market capitalization of ₹19b, and total annual CEO compensation was reported as ₹60m for the year to March 2025. That's a notable increase of 22% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at ₹27m.

In comparison with other companies in the Indian Auto Components industry with market capitalizations ranging from ₹8.6b to ₹34b, the reported median CEO total compensation was ₹28m. Hence, we can conclude that Srivats Ram is remunerated higher than the industry median. What's more, Srivats Ram holds ₹88m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, around 79% of total compensation represents salary and 21% is other remuneration. In Wheels India's case, non-salary compensation represents a greater slice of total remuneration, in comparison 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.

A Look at Wheels India Limited's Growth Numbers

Wheels India Limited has seen its earnings per share (EPS) increase by 13% a year over the past three years. In the last year, its revenue is down 4.7%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Wheels India Limited Been A Good Investment?

Wheels India Limited has served shareholders reasonably well, with a total return of 22% over three years. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary...

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.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 2 warning signs (and 1 which makes us a bit uncomfortable) in Wheels India we think you should know about.

Important note: Wheels India 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.

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.