Elgi Rubber Company Limited's (NSE:ELGIRUBCO) CEO Compensation Is Looking A Bit Stretched At The Moment

Key Insights

• Elgi Rubber's Annual General Meeting to take place on 11th of August
• Salary of ₹6.75m is part of CEO Sudarsan Varadaraj's total remuneration
• The overall pay is 42% above the industry average
• Elgi Rubber's EPS grew by 47% over the past three years while total shareholder return over the past three years was 68%

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Performance at Elgi Rubber Company Limited (NSE:ELGIRUBCO) has been reasonably good and CEO Sudarsan Varadaraj has done a decent job of steering the company in the right direction. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 11th of August. However, some shareholders will still be cautious of paying the CEO excessively.

View our latest analysis for Elgi Rubber

Comparing Elgi Rubber Company Limited's CEO Compensation With The Industry

According to our data, Elgi Rubber Company Limited has a market capitalization of ₹2.6b, and paid its CEO total annual compensation worth ₹7.9m over the year to March 2025. That's a slight decrease of 4.9% on the prior year. We note that the salary portion, which stands at ₹6.75m constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the Indian Machinery industry with market capitalizations under ₹18b, the reported median total CEO compensation was ₹5.6m. This suggests that Sudarsan Varadaraj is paid more than the median for the industry. Furthermore, Sudarsan Varadaraj directly owns ₹1.2b worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, roughly 94% of total compensation represents salary and 6% is other remuneration. Our data reveals that Elgi Rubber allocates salary more or less in line with the wider market. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Elgi Rubber Company Limited's Growth Numbers

Elgi Rubber Company Limited has seen its earnings per share (EPS) increase by 47% a year over the past three years. The trailing twelve months of revenue was pretty much the same as the prior period.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in 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 Elgi Rubber Company Limited Been A Good Investment?

Boasting a total shareholder return of 68% over three years, Elgi Rubber Company 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.

In Summary...

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. That's why we did some digging and identified 1 warning sign for Elgi Rubber that investors should think about before committing capital to this stock.

Switching gears from Elgi Rubber, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.