It's Unlikely That Walchandnagar Industries Limited's (NSE:WALCHANNAG) CEO Will See A Huge Pay Rise This Year

Key Insights

• Walchandnagar Industries' Annual General Meeting to take place on 14th of August
• Salary of ₹12.7m is part of CEO Chirag Doshi's total remuneration
• The total compensation is 130% higher than the average for the industry
• Walchandnagar Industries' EPS declined by 3.2% over the past three years while total shareholder return over the past three years was 254%

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Walchandnagar Industries Limited (NSE:WALCHANNAG) has exhibited strong share price growth in the past few years. However, its earnings growth has not kept up, suggesting that there may be something amiss. The upcoming AGM on 14th of August may be an opportunity for shareholders to bring up any concerns they may have for the board’s attention. It would also be an opportunity for them to influence management through exercising their voting power on company resolutions, including CEO and executive remuneration, which could impact on firm performance in the future. From what we gathered, we think shareholders should be wary of raising CEO compensation until the company shows some marked improvement.

View our latest analysis for Walchandnagar Industries

Comparing Walchandnagar Industries Limited's CEO Compensation With The Industry

At the time of writing, our data shows that Walchandnagar Industries Limited has a market capitalization of ₹12b, and reported total annual CEO compensation of ₹13m for the year to March 2025. This means that the compensation hasn't changed much from last year. Notably, the salary of ₹13m is the entirety of the CEO compensation.

On comparing similar-sized companies in the Indian Machinery industry with market capitalizations below ₹18b, we found that the median total CEO compensation was ₹5.5m. This suggests that Chirag Doshi is paid more than the median for the industry. What's more, Chirag Doshi holds ₹3.2m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Talking in terms of the industry, salary represented approximately 91% of total compensation out of all the companies we analyzed, while other remuneration made up 9% of the pie. At the company level, Walchandnagar Industries pays Chirag Doshi solely through a salary, preferring to go down a conventional route. 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.

A Look at Walchandnagar Industries Limited's Growth Numbers

Over the last three years, Walchandnagar Industries Limited has shrunk its earnings per share by 3.2% per year. Its revenue is down 14% over the previous year.

Overall this is not a very positive result for shareholders. This is compounded by the fact revenue is actually down on last year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Walchandnagar Industries Limited Been A Good Investment?

Boasting a total shareholder return of 254% over three years, Walchandnagar Industries Limited has done well by shareholders. 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.

To Conclude...

Walchandnagar Industries pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. Despite the strong returns on shareholders' investments, the fact that earnings have failed to grow makes us skeptical about the stock keeping up its current momentum. Shareholders should make the most of the coming opportunity to question the board on key concerns they may have and revisit their investment thesis with regards to the company.

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 Walchandnagar Industries 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.