Lux Industries Limited's (NSE:LUXIND) CEO Might Not Expect Shareholders To Be So Generous This Year
Key Insights
- Lux Industries to hold its Annual General Meeting on 22nd of September
- Salary of ₹45.0m is part of CEO Pradip Todi's total remuneration
- Total compensation is 31% above industry average
- Over the past three years, Lux Industries' EPS fell by 22% and over the past three years, the total loss to shareholders 31%
Lux Industries Limited (NSE:LUXIND) has not performed well recently and CEO Pradip Todi will probably need to up their game. At the upcoming AGM on 22nd of September, shareholders can hear from the board including their plans for turning around performance. 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. From our analysis, we think CEO compensation may need a review in light of the recent performance.
See our latest analysis for Lux Industries
Comparing Lux Industries Limited's CEO Compensation With The Industry
According to our data, Lux Industries Limited has a market capitalization of ₹39b, and paid its CEO total annual compensation worth ₹45m over the year to March 2025. This was the same amount the CEO received in the prior year. Notably, the salary of ₹45m is the entirety of the CEO compensation.
For comparison, other companies in the Indian Luxury industry with market capitalizations ranging between ₹18b and ₹71b had a median total CEO compensation of ₹34m. This suggests that Pradip Todi is paid more than the median for the industry. What's more, Pradip Todi holds ₹9.3b worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
| Component | 2025 | 2024 | Proportion (2025) |
| Salary | ₹45m | ₹45m | 100% |
| Other | - | - | - |
| Total Compensation | ₹45m | ₹45m | 100% |
Speaking on an industry level, nearly 99% of total compensation represents salary, while the remainder of 1% is other remuneration. Speaking on a company level, Lux Industries 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 Lux Industries Limited's Growth Numbers
Lux Industries Limited has reduced its earnings per share by 22% a year over the last three years. In the last year, its revenue is up 13%.
Overall this is not a very positive result for shareholders. And while it's good to see some good revenue growth recently, the growth isn't really fast enough for us to put aside my concerns around EPS. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has Lux Industries Limited Been A Good Investment?
With a total shareholder return of -31% over three years, Lux Industries Limited shareholders would by and large be disappointed. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
In Summary...
Lux Industries pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. 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, the board will get the chance to explain the steps it plans to take to improve business performance.
CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Lux Industries (free visualization of insider trades).
Switching gears from Lux Industries, 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.