We Think Some Shareholders May Hesitate To Increase APAR Industries Limited's (NSE:APARINDS) CEO Compensation

Key Insights

• APAR Industries' Annual General Meeting to take place on 5th of August
• Salary of ₹20.5m is part of CEO Kushal Desai's total remuneration
• The overall pay is 50% above the industry average
• Over the past three years, APAR Industries' EPS grew by 45% and over the past three years, the total shareholder return was 718%

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Under the guidance of CEO Kushal Desai, APAR Industries Limited (NSE:APARINDS) has performed reasonably well recently. As shareholders go into the upcoming AGM on 5th 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.

See our latest analysis for APAR Industries

How Does Total Compensation For Kushal Desai Compare With Other Companies In The Industry?

According to our data, APAR Industries Limited has a market capitalization of ₹389b, and paid its CEO total annual compensation worth ₹130m over the year to March 2025. That's a slight decrease of 5.2% on the prior year. While we always look at total compensation first, our analysis shows that the salary component is less, at ₹21m.

For comparison, other companies in the India Industrials industry with market capitalizations ranging between ₹174b and ₹556b had a median total CEO compensation of ₹87m. Hence, we can conclude that Kushal Desai is remunerated higher than the industry median. Moreover, Kushal Desai also holds ₹90b worth of APAR Industries stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Speaking on an industry level, nearly 88% of total compensation represents salary, while the remainder of 12% is other remuneration. APAR Industries sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

APAR Industries Limited's Growth

APAR Industries Limited has seen its earnings per share (EPS) increase by 45% a year over the past three years. In the last year, its revenue is up 15%.

This demonstrates that the company has been improving recently and is good news for the shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has APAR Industries Limited Been A Good Investment?

Boasting a total shareholder return of 718% over three years, APAR Industries Limited has done well by shareholders. 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.

To Conclude...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 2 warning signs for APAR Industries that investors should look into moving forward.

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.