Shareholders May Not Be So Generous With Vascon Engineers Limited's (NSE:VASCONEQ) CEO Compensation And Here's Why
Key Insights
- Vascon Engineers to hold its Annual General Meeting on 24th of September
- Total pay for CEO Santosh Sundararajan includes ₹42.1m salary
- The overall pay is 1,551% above the industry average
- Over the past three years, Vascon Engineers' EPS grew by 35% and over the past three years, the total shareholder return was 111%
CEO Santosh Sundararajan has done a decent job of delivering relatively good performance at Vascon Engineers Limited (NSE:VASCONEQ) recently. 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 24th of September. However, some shareholders may still want to keep CEO compensation within reason.
See our latest analysis for Vascon Engineers
How Does Total Compensation For Santosh Sundararajan Compare With Other Companies In The Industry?
Our data indicates that Vascon Engineers Limited has a market capitalization of ₹14b, and total annual CEO compensation was reported as ₹189m for the year to March 2025. That's a notable increase of 48% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at ₹42m.
On comparing similar companies from the Indian Construction industry with market caps ranging from ₹8.8b to ₹35b, we found that the median CEO total compensation was ₹11m. This suggests that Santosh Sundararajan is paid more than the median for the industry. Moreover, Santosh Sundararajan also holds ₹702m worth of Vascon Engineers stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
| Component | 2025 | 2024 | Proportion (2025) |
| Salary | ₹42m | ₹28m | 22% |
| Other | ₹146m | ₹100m | 78% |
| Total Compensation | ₹189m | ₹128m | 100% |
On an industry level, it's fascinating to see that all of total compensation represents salary and non-salary benefits do not factor into the equation at all. It's interesting to note that Vascon Engineers allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
A Look at Vascon Engineers Limited's Growth Numbers
Vascon Engineers Limited's earnings per share (EPS) grew 35% per year over the last three years. Revenue was pretty flat on last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. 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 Vascon Engineers Limited Been A Good Investment?
We think that the total shareholder return of 111%, over three years, would leave most Vascon Engineers Limited shareholders smiling. 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.
To Conclude...
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, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.
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 Vascon Engineers that you should be aware of before investing.
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.