We Discuss Why Somany Ceramics Limited's (NSE:SOMANYCERA) CEO Compensation May Be Closely Reviewed

Key Insights

• Somany Ceramics' Annual General Meeting to take place on 18th of September
• Total pay for CEO Abhishek Somany includes ₹51.4m salary
• Total compensation is 67% above industry average
• Somany Ceramics' EPS declined by 17% over the past three years while total shareholder loss over the past three years was 22%

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Somany Ceramics Limited (NSE:SOMANYCERA) has not performed well recently and CEO Abhishek Somany will probably need to up their game. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 18th of September. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. From our analysis, we think CEO compensation may need a review in light of the recent performance.

Check out our latest analysis for Somany Ceramics

Comparing Somany Ceramics Limited's CEO Compensation With The Industry

According to our data, Somany Ceramics Limited has a market capitalization of ₹19b, and paid its CEO total annual compensation worth ₹52m over the year to March 2025. Notably, that's a decrease of 27% over the year before. Notably, the salary which is ₹51.4m, represents most of the total compensation being paid.

For comparison, other companies in the Indian Building industry with market capitalizations ranging between ₹8.8b and ₹35b had a median total CEO compensation of ₹31m. Accordingly, our analysis reveals that Somany Ceramics Limited pays Abhishek Somany north of the industry median.

Component	2025	2024	Proportion (2025)
Salary	₹51m	₹50m	99%
Other	₹444k	₹21m	1%
Total Compensation	₹52m	₹71m	100%

Speaking on an industry level, all of total compensation represents salary, while non-salary remuneration is completely ignored. Somany Ceramics is focused on going down a more traditional approach and is paying a higher portion of compensation through salary, as compared to non-salary benefits. 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.

Somany Ceramics Limited's Growth

Over the last three years, Somany Ceramics Limited has shrunk its earnings per share by 17% per year. It achieved revenue growth of 3.9% over the last year.

Few shareholders would be pleased to read that EPS have declined. The modest increase in revenue in the last year isn't enough to make us overlook the disappointing change in EPS. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. 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 Somany Ceramics Limited Been A Good Investment?

Since shareholders would have lost about 22% over three years, some Somany Ceramics Limited investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Somany Ceramics pays its CEO a majority of compensation through a salary. Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 2 warning signs for Somany Ceramics that you should be aware of before investing.

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.