It Looks Like Shareholders Would Probably Approve B.L. Kashyap and Sons Limited's (NSE:BLKASHYAP) CEO Compensation Package

Key Insights

• B.L. Kashyap and Sons will host its Annual General Meeting on 30th of September
• Total pay for CEO Vineet Kashyap includes ₹9.00m salary
• Total compensation is similar to the industry average
• B.L. Kashyap and Sons' total shareholder return over the past three years was 287% while its EPS grew by 55% over the past three years

It would be hard to discount the role that CEO Vineet Kashyap has played in delivering the impressive results at B.L. Kashyap and Sons Limited (NSE:BLKASHYAP) recently. Shareholders will have this at the front of their minds in the upcoming AGM on 30th of September. The focus will probably be on the future company strategy as shareholders cast their votes on resolutions such as executive remuneration and other matters. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.

Check out our latest analysis for B.L. Kashyap and Sons

Comparing B.L. Kashyap and Sons Limited's CEO Compensation With The Industry

Our data indicates that B.L. Kashyap and Sons Limited has a market capitalization of ₹23b, and total annual CEO compensation was reported as ₹9.2m for the year to March 2024. We note that's an increase of 47% above last year. We note that the salary portion, which stands at ₹9.00m constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the Indian Construction industry with market capitalizations ranging from ₹8.3b to ₹33b, the reported median CEO total compensation was ₹12m. So it looks like B.L. Kashyap and Sons compensates Vineet Kashyap in line with the median for the industry. Furthermore, Vineet Kashyap directly owns ₹5.0b worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	₹9.0m	₹6.0m	98%
Other	₹199k	₹237k	2%
Total Compensation	₹9.2m	₹6.2m	100%

On an industry level, around 98% of total compensation represents salary and 2% is other remuneration. B.L. Kashyap and Sons has gone down a largely traditional route, paying Vineet Kashyap a high salary, giving it preference over non-salary benefits. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at B.L. Kashyap and Sons Limited's Growth Numbers

B.L. Kashyap and Sons Limited has seen its earnings per share (EPS) increase by 55% a year over the past three years. In the last year, its revenue is up 25%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has B.L. Kashyap and Sons Limited Been A Good Investment?

Boasting a total shareholder return of 287% over three years, B.L. Kashyap and Sons 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...

Vineet receives almost all of their compensation through a salary. Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 1 warning sign for B.L. Kashyap and Sons that investors should look into moving forward.

Important note: B.L. Kashyap and Sons 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.

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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.