Here's Why Shareholders May Want To Be Cautious With Increasing Cantabil Retail India Limited's (NSE:CANTABIL) CEO Pay Packet

Key Insights

• Cantabil Retail India to hold its Annual General Meeting on 9th of September
• CEO Vijay Bansal's total compensation includes salary of ₹36.0m
• Total compensation is 82% above industry average
• Cantabil Retail India's EPS grew by 12% over the past three years while total shareholder loss over the past three years was 13%

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As many shareholders of Cantabil Retail India Limited (NSE:CANTABIL) will be aware, they have not made a gain on their investment in the past three years. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. The AGM coming up on the 9th of September could be an opportunity for shareholders to bring these concerns to the board's attention. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.

Check out our latest analysis for Cantabil Retail India

How Does Total Compensation For Vijay Bansal Compare With Other Companies In The Industry?

At the time of writing, our data shows that Cantabil Retail India Limited has a market capitalization of ₹22b, and reported total annual CEO compensation of ₹37m for the year to March 2025. That's a notable increase of 54% on last year. In particular, the salary of ₹36.0m, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the Indian Luxury industry with market capitalizations ranging between ₹8.8b and ₹35b had a median total CEO compensation of ₹20m. This suggests that Vijay Bansal is paid more than the median for the industry. What's more, Vijay Bansal holds ₹6.1b 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, around 98% of total compensation represents salary and 2% is other remuneration. Cantabil Retail India has gone down a largely traditional route, paying Vijay Bansal a high salary, giving it preference over non-salary benefits. 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.

Cantabil Retail India Limited's Growth

Over the past three years, Cantabil Retail India Limited has seen its earnings per share (EPS) grow by 12% per year. It achieved revenue growth of 19% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. 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 Cantabil Retail India Limited Been A Good Investment?

Given the total shareholder loss of 13% over three years, many shareholders in Cantabil Retail India Limited are probably rather dissatisfied, to say the least. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

Cantabil Retail India pays its CEO a majority of compensation through a salary. Shareholders have not seen their shares grow in value, rather they have seen their shares decline. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. Shareholders would be keen to know what's holding the stock back when earnings have grown. At the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.

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 Cantabil Retail India that you should be aware of before investing.

Important note: Cantabil Retail India 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.