Shareholders May Not Be So Generous With Cera Sanitaryware Limited's (NSE:CERA) CEO Compensation And Here's Why

Key Insights

• Cera Sanitaryware's Annual General Meeting to take place on 17th of July
• Total pay for CEO Vikram Somany includes ₹77.7m salary
• The total compensation is 454% higher than the average for the industry
• Cera Sanitaryware's total shareholder return over the past three years was 70% while its EPS grew by 18% over the past three years

We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

CEO Vikram Somany has done a decent job of delivering relatively good performance at Cera Sanitaryware Limited (NSE:CERA) recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 17th of July. However, some shareholders may still want to keep CEO compensation within reason.

See our latest analysis for Cera Sanitaryware

Comparing Cera Sanitaryware Limited's CEO Compensation With The Industry

According to our data, Cera Sanitaryware Limited has a market capitalization of ₹88b, and paid its CEO total annual compensation worth ₹88m over the year to March 2025. That's a fairly small increase of 4.1% over the previous year. In particular, the salary of ₹77.7m, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the Indian Building industry with market capitalizations ranging from ₹34b to ₹137b, the reported median CEO total compensation was ₹16m. This suggests that Vikram Somany is paid more than the median for the industry. Moreover, Vikram Somany also holds ₹15b worth of Cera Sanitaryware 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 96% of total compensation represents salary, while the remainder of 4% is other remuneration. Our data reveals that Cera Sanitaryware allocates salary more or less in line with the wider market. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at Cera Sanitaryware Limited's Growth Numbers

Cera Sanitaryware Limited's earnings per share (EPS) grew 18% per year over the last three years. It achieved revenue growth of 2.5% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see modest revenue growth, suggesting the underlying business is healthy. 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 Cera Sanitaryware Limited Been A Good Investment?

Most shareholders would probably be pleased with Cera Sanitaryware Limited for providing a total return of 70% over three years. 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.

In Summary...

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, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We did our research and identified 2 warning signs (and 1 which is a bit concerning) in Cera Sanitaryware we think you should know about.

Important note: Cera Sanitaryware 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.