We Think The Compensation For Adani Enterprises Limited's (NSE:ADANIENT) CEO Looks About Right

Key Insights

• Adani Enterprises will host its Annual General Meeting on 24th of June
• Total pay for CEO Vinay Goel includes ₹40.0m salary
• Total compensation is similar to the industry average
• Over the past three years, Adani Enterprises' EPS grew by 104% and over the past three years, the total shareholder return was 15%

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Under the guidance of CEO Vinay Goel, Adani Enterprises Limited (NSE:ADANIENT) has performed reasonably well recently. As shareholders go into the upcoming AGM on 24th of June, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.

See our latest analysis for Adani Enterprises

Comparing Adani Enterprises Limited's CEO Compensation With The Industry

At the time of writing, our data shows that Adani Enterprises Limited has a market capitalization of ₹2.9t, and reported total annual CEO compensation of ₹693m for the year to March 2025. That's a notable decrease of 22% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at ₹40m.

For comparison, other companies in the India Trade Distributors industry with market capitalizations above ₹690b, reported a median total CEO compensation of ₹546m. From this we gather that Vinay Goel is paid around the median for CEOs in the industry.

On an industry level, it's fascinating to see that all of total compensation represents salary and non-salary benefits do not factor into the equation at all. It's interesting to note that Adani Enterprises allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Adani Enterprises Limited's Growth

Adani Enterprises Limited has seen its earnings per share (EPS) increase by 104% a year over the past three years. It achieved revenue growth of 1.5% 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. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Adani Enterprises Limited Been A Good Investment?

With a total shareholder return of 15% over three years, Adani Enterprises Limited shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

To Conclude...

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, we still think that any proposed increase in CEO compensation will be examined closely to make sure the compensation is appropriate and linked to performance.

CEO compensation can have a massive impact on performance, but it's just one element. We've identified 2 warning signs for Adani Enterprises that investors should be aware of in a dynamic business environment.

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.