Here's Why It's Unlikely That Campus Activewear Limited's (NSE:CAMPUS) CEO Will See A Pay Rise This Year

Key Insights

• Campus Activewear to hold its Annual General Meeting on 23rd of September
• Total pay for CEO Nikhil Aggarwal includes ₹20.5m salary
• Total compensation is similar to the industry average
• Over the past three years, Campus Activewear's EPS fell by 7.8% and over the past three years, the total loss to shareholders 52%

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Campus Activewear Limited (NSE:CAMPUS) has not performed well recently and CEO Nikhil Aggarwal will probably need to up their game. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 23rd of September. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. The data we present below explains why we think CEO compensation is not consistent with recent performance.

Check out our latest analysis for Campus Activewear

How Does Total Compensation For Nikhil Aggarwal Compare With Other Companies In The Industry?

At the time of writing, our data shows that Campus Activewear Limited has a market capitalization of ₹84b, and reported total annual CEO compensation of ₹33m for the year to March 2025. We note that's an increase of 11% above last year. Notably, the salary which is ₹20.5m, represents most of the total compensation being paid.

For comparison, other companies in the Indian Luxury industry with market capitalizations ranging between ₹35b and ₹141b had a median total CEO compensation of ₹41m. This suggests that Campus Activewear remunerates its CEO largely in line with the industry average. Moreover, Nikhil Aggarwal also holds ₹10b worth of Campus Activewear stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, around 99% of total compensation represents salary and 1% is other remuneration. Campus Activewear sets aside a smaller share of compensation for salary, in comparison to the overall industry. 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 Campus Activewear Limited's Growth Numbers

Over the last three years, Campus Activewear Limited has shrunk its earnings per share by 7.8% per year. Its revenue is up 11% over the last year.

The decline in EPS is a bit concerning. There's no doubt that the silver lining is that revenue is up. But it isn't sufficiently fast growth to overlook the fact that EPS has gone backwards over three years. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Campus Activewear Limited Been A Good Investment?

With a total shareholder return of -52% over three years, Campus Activewear Limited shareholders would by and large be disappointed. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

Whatever your view on compensation, you might want to check if insiders are buying or selling Campus Activewear shares (free trial).

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.