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

Key Insights

• Laxmi Cotspin to hold its Annual General Meeting on 19th of September
• CEO Sanjay Rathi's total compensation includes salary of ₹7.20m
• Total compensation is 100% above industry average
• Laxmi Cotspin's EPS grew by 14% over the past three years while total shareholder return over the past three years was 0.08%

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Under the guidance of CEO Sanjay Rathi, Laxmi Cotspin Limited (NSE:LAXMICOT) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 19th of September. However, some shareholders will still be cautious of paying the CEO excessively.

Check out our latest analysis for Laxmi Cotspin

How Does Total Compensation For Sanjay Rathi Compare With Other Companies In The Industry?

Our data indicates that Laxmi Cotspin Limited has a market capitalization of ₹425m, and total annual CEO compensation was reported as ₹7.2m for the year to March 2025. There was no change in the compensation compared to last year. Notably, the salary of ₹7.2m is the entirety of the CEO compensation.

In comparison with other companies in the Indian Luxury industry with market capitalizations under ₹18b, the reported median total CEO compensation was ₹3.6m. This suggests that Sanjay Rathi is paid more than the median for the industry. Furthermore, Sanjay Rathi directly owns ₹11m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, roughly 99% of total compensation represents salary and 1% is other remuneration. Speaking on a company level, Laxmi Cotspin prefers to tread along a traditional path, disbursing all compensation through a salary. 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 Laxmi Cotspin Limited's Growth Numbers

Over the past three years, Laxmi Cotspin Limited has seen its earnings per share (EPS) grow by 14% per year. In the last year, its revenue is up 34%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Laxmi Cotspin Limited Been A Good Investment?

Laxmi Cotspin Limited has not done too badly by shareholders, with a total return of 0.08%, over three years. It would be nice to see that metric improve in the future. In light of that, investors might probably want to see an improvement on their returns before they feel generous about increasing the CEO remuneration.

In Summary...

Laxmi Cotspin pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. In our study, we found 3 warning signs for Laxmi Cotspin you should be aware of, and 2 of them are concerning.

Switching gears from Laxmi Cotspin, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.