Here's Why Shareholders May Want To Be Cautious With Increasing Blue Star Limited's (NSE:BLUESTARCO) CEO Pay Packet

Key Insights

• Blue Star will host its Annual General Meeting on 6th of August
• Salary of ₹17.6m is part of CEO Vir Advani's total remuneration
• The overall pay is 43% above the industry average
• Blue Star's total shareholder return over the past three years was 268% while its EPS grew by 49% over the past three years

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Under the guidance of CEO Vir Advani, Blue Star Limited (NSE:BLUESTARCO) has performed reasonably well recently. As shareholders go into the upcoming AGM on 6th 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 may still be hesitant of being overly generous with CEO compensation.

View our latest analysis for Blue Star

Comparing Blue Star Limited's CEO Compensation With The Industry

At the time of writing, our data shows that Blue Star Limited has a market capitalization of ₹361b, and reported total annual CEO compensation of ₹171m for the year to March 2025. That's a notable increase of 52% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at ₹18m.

For comparison, other companies in the Indian Building industry with market capitalizations ranging between ₹175b and ₹560b had a median total CEO compensation of ₹120m. Hence, we can conclude that Vir Advani is remunerated higher than the industry median. What's more, Vir Advani holds ₹4.1b worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Talking in terms of the industry, salary represented approximately 94% of total compensation out of all the companies we analyzed, while other remuneration made up 6% of the pie. Blue Star pays a modest slice of remuneration through salary, as compared to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at Blue Star Limited's Growth Numbers

Blue Star Limited's earnings per share (EPS) grew 49% per year over the last three years. Its revenue is up 24% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. 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 Blue Star Limited Been A Good Investment?

Boasting a total shareholder return of 268% over three years, Blue Star Limited has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

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. 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.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 1 warning sign for Blue Star that investors should think about before committing capital to this stock.

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.