Increases to BPL Limited's (NSE:BPL) CEO Compensation Might Cool off for now

Key Insights

• BPL to hold its Annual General Meeting on 30th of September
• Total pay for CEO Ajit Nambiar includes ₹9.97m salary
• The total compensation is 176% higher than the average for the industry
• BPL's total shareholder return over the past three years was 20% while its EPS was down 23% over the past three years

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The share price of BPL Limited (NSE:BPL) has been growing in the past few years, however, the per-share earnings growth has been lacking, suggesting something is amiss. These concerns will be at the front of shareholders' minds as they go into the AGM coming up on 30th of September. One way that shareholders can influence managerial decisions is through voting on CEO and executive remuneration packages, which studies show could impact company performance. In our analysis below, we show why shareholders may consider holding off a raise for the CEO's compensation until company performance improves.

Check out our latest analysis for BPL

Comparing BPL Limited's CEO Compensation With The Industry

According to our data, BPL Limited has a market capitalization of ₹4.0b, and paid its CEO total annual compensation worth ₹10.0m over the year to March 2025. We note that's a small decrease of 4.8% on last year. It is worth noting that the CEO compensation consists entirely of the salary, worth ₹10.0m.

For comparison, other companies in the Indian Consumer Durables industry with market capitalizations below ₹18b, reported a median total CEO compensation of ₹3.6m. Hence, we can conclude that Ajit Nambiar is remunerated higher than the industry median. What's more, Ajit Nambiar holds ₹6.6m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

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. On a company level, BPL prefers to reward its CEO through a salary, opting not to pay Ajit Nambiar through non-salary benefits. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at BPL Limited's Growth Numbers

Over the last three years, BPL Limited has shrunk its earnings per share by 23% per year. It achieved revenue growth of 9.9% over the last year.

Overall this is not a very positive result for shareholders. The fairly low revenue growth fails to impress given that the EPS is down. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 BPL Limited Been A Good Investment?

BPL Limited has generated a total shareholder return of 20% over three years, so most shareholders would be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

To Conclude...

BPL rewards its CEO solely through a salary, ignoring non-salary benefits completely. While it's true that shareholders have owned decent returns, it's hard to overlook the lack of earnings growth and this makes us question whether these returns will continue. 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.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. That's why we did our research, and identified 2 warning signs for BPL (of which 1 is potentially serious!) 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.