Shareholders May Be More Conservative With Borosil Limited's (NSE:BOROLTD) CEO Compensation For Now

Key Insights

• Borosil to hold its Annual General Meeting on 29th of July
• Total pay for CEO Shreevar Kheruka includes ₹60.7m salary
• Total compensation is 177% above industry average
• Over the past three years, Borosil's EPS fell by 5.4% and over the past three years, the total shareholder return was 40%

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Under the guidance of CEO Shreevar Kheruka, Borosil Limited (NSE:BOROLTD) has performed reasonably well recently. As shareholders go into the upcoming AGM on 29th of July, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still want to keep CEO compensation within reason.

Check out our latest analysis for Borosil

How Does Total Compensation For Shreevar Kheruka Compare With Other Companies In The Industry?

According to our data, Borosil Limited has a market capitalization of ₹41b, and paid its CEO total annual compensation worth ₹155m over the year to March 2025. That's a notable increase of 38% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at ₹61m.

On examining similar-sized companies in the Indian Consumer Durables industry with market capitalizations between ₹17b and ₹69b, we discovered that the median CEO total compensation of that group was ₹56m. Accordingly, our analysis reveals that Borosil Limited pays Shreevar Kheruka north of the industry median. Furthermore, Shreevar Kheruka directly owns ₹16b worth of shares in the company, implying that they are deeply invested in the company's success.

Talking in terms of the industry, salary represented approximately 97% of total compensation out of all the companies we analyzed, while other remuneration made up 3% of the pie. It's interesting to note that Borosil allocates a smaller portion of compensation to salary in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at Borosil Limited's Growth Numbers

Over the last three years, Borosil Limited has shrunk its earnings per share by 5.4% per year. Its revenue is up 17% over the last year.

The decrease in EPS could be a concern for some investors. But in contrast the revenue growth is strong, suggesting future potential for EPS growth. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. 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 Borosil Limited Been A Good Investment?

Most shareholders would probably be pleased with Borosil Limited for providing a total return of 40% over three years. 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...

The overall company performance has been commendable, however there are still areas for improvement. Until EPS growth picks back up, we think shareholders may find it hard to justify increasing CEO pay given that they are already paid above industry average.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 1 warning sign for Borosil that you should be aware of before investing.

Important note: Borosil is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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.