Shareholders Will Probably Hold Off On Increasing Universal Cables Limited's (NSE:UNIVCABLES) CEO Compensation For The Time Being

Key Insights

• Universal Cables will host its Annual General Meeting on 12th of September
• CEO Y. Lodha's total compensation includes salary of ₹12.0m
• The overall pay is 56% above the industry average
• Universal Cables' total shareholder return over the past three years was 220% while its EPS grew by 13% over the past three years

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Performance at Universal Cables Limited (NSE:UNIVCABLES) has been reasonably good and CEO Y. Lodha has done a decent job of steering the company in the right direction. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 12th of September. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

See our latest analysis for Universal Cables

How Does Total Compensation For Y. Lodha Compare With Other Companies In The Industry?

According to our data, Universal Cables Limited has a market capitalization of ₹25b, and paid its CEO total annual compensation worth ₹22m over the year to March 2025. We note that's an increase of 11% above last year. Notably, the salary which is ₹12.0m, represents a considerable chunk of the total compensation being paid.

For comparison, other companies in the Indian Electrical industry with market capitalizations ranging between ₹8.8b and ₹35b had a median total CEO compensation of ₹14m. This suggests that Y. Lodha is paid more than the median for the industry. Moreover, Y. Lodha also holds ₹1.8m worth of Universal Cables stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, around 85% of total compensation represents salary and 15% is other remuneration. Universal Cables sets aside a smaller share of compensation for salary, in comparison to the overall industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Universal Cables Limited's Growth

Over the past three years, Universal Cables Limited has seen its earnings per share (EPS) grow by 13% per year. In the last year, its revenue is up 24%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. 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 Universal Cables Limited Been A Good Investment?

Most shareholders would probably be pleased with Universal Cables Limited for providing a total return of 220% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its 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. 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. That's why we did our research, and identified 2 warning signs for Universal Cables (of which 1 makes us a bit uncomfortable!) that you should know about in order to have a holistic understanding of the stock.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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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.