We Take A Look At Why Spectrum Electrical Industries Limited's (NSE:SPECTRUM) CEO Compensation Is Well Earned

Key Insights

• Spectrum Electrical Industries will host its Annual General Meeting on 30th of September
• CEO Deepak Chaudhari's total compensation includes salary of ₹11.7m
• The overall pay is comparable to the industry average
• Spectrum Electrical Industries' EPS grew by 63% over the past three years while total shareholder return over the past three years was 1,996%

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We have been pretty impressed with the performance at Spectrum Electrical Industries Limited (NSE:SPECTRUM) recently and CEO Deepak Chaudhari deserves a mention for their role in it. Coming up to the next AGM on 30th of September, shareholders would be keeping this in mind. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.

See our latest analysis for Spectrum Electrical Industries

Comparing Spectrum Electrical Industries Limited's CEO Compensation With The Industry

At the time of writing, our data shows that Spectrum Electrical Industries Limited has a market capitalization of ₹22b, and reported total annual CEO compensation of ₹12m for the year to March 2025. This means that the compensation hasn't changed much from last year. Notably, the salary of ₹12m is the entirety of the CEO compensation.

For comparison, other companies in the Indian Electrical industry with market capitalizations ranging between ₹8.9b and ₹35b had a median total CEO compensation of ₹14m. This suggests that Spectrum Electrical Industries remunerates its CEO largely in line with the industry average. Moreover, Deepak Chaudhari also holds ₹11b worth of Spectrum Electrical Industries stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, roughly 85% of total compensation represents salary and 15% is other remuneration. At the company level, Spectrum Electrical Industries pays Deepak Chaudhari solely through a salary, preferring to go down a conventional route. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Spectrum Electrical Industries Limited's Growth

Spectrum Electrical Industries Limited has seen its earnings per share (EPS) increase by 63% a year over the past three years. Its revenue is up 22% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Spectrum Electrical Industries Limited Been A Good Investment?

We think that the total shareholder return of 1,996%, over three years, would leave most Spectrum Electrical Industries Limited shareholders smiling. 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...

Spectrum Electrical Industries pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed 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. That's why we did some digging and identified 1 warning sign for Spectrum Electrical Industries 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.