We Think Shareholders Are Less Likely To Approve A Large Pay Rise For Borosil Limited's (NSE:BOROLTD) CEO For Now

Key Insights

• Borosil will host its Annual General Meeting on 24th of September
• CEO Shreevar Kheruka's total compensation includes salary of ₹55.2m
• The total compensation is 490% higher than the average for the industry
• Borosil's EPS grew by 12% over the past three years while total shareholder return over the past three years was 164%

Performance at Borosil Limited (NSE:BOROLTD) has been reasonably good and CEO Shreevar Kheruka has done a decent job of steering the company in the right direction. 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 be hesitant of being overly generous with CEO compensation.

View our latest analysis for Borosil

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

At the time of writing, our data shows that Borosil Limited has a market capitalization of ₹50b, and reported total annual CEO compensation of ₹112m for the year to March 2024. We note that's an increase of 13% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at ₹55m.

On examining similar-sized companies in the Indian Consumer Durables industry with market capitalizations between ₹17b and ₹67b, we discovered that the median CEO total compensation of that group was ₹19m. Accordingly, our analysis reveals that Borosil Limited pays Shreevar Kheruka north of the industry median. Furthermore, Shreevar Kheruka directly owns ₹20b worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	₹55m	₹48m	49%
Other	₹57m	₹51m	51%
Total Compensation	₹112m	₹99m	100%

On an industry level, roughly 95% of total compensation represents salary and 5% is other remuneration. Borosil sets aside a smaller share of compensation for salary, in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at Borosil Limited's Growth Numbers

Borosil Limited has seen its earnings per share (EPS) increase by 12% a year over the past three years. In the last year, its revenue is down 7.5%.

Shareholders would be glad to know that the company has improved itself over the last few years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Borosil Limited Been A Good Investment?

We think that the total shareholder return of 164%, over three years, would leave most Borosil 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.

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.

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 Borosil that investors should think about before committing capital to this 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.