Vedant Fashions Limited's (NSE:MANYAVAR) CEO Will Probably Find It Hard To See A Huge Raise This Year

Key Insights

• Vedant Fashions will host its Annual General Meeting on 4th of September
• Salary of ₹30.0m is part of CEO Ravi Modi's total remuneration
• The overall pay is comparable to the industry average
• Over the past three years, Vedant Fashions' EPS grew by 2.2% and over the past three years, the total loss to shareholders 40%

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In the past three years, the share price of Vedant Fashions Limited (NSE:MANYAVAR) has struggled to grow and now shareholders are sitting on a loss. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. These are some of the concerns that shareholders may want to bring up at the next AGM held on 4th of September. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. We discuss below why we think shareholders should be cautious of approving a raise for the CEO at the moment.

Check out our latest analysis for Vedant Fashions

Comparing Vedant Fashions Limited's CEO Compensation With The Industry

At the time of writing, our data shows that Vedant Fashions Limited has a market capitalization of ₹184b, and reported total annual CEO compensation of ₹35m for the year to March 2025. That's a notable decrease of 22% on last year. In particular, the salary of ₹30.0m, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar companies from the Indian Luxury industry with market caps ranging from ₹88b to ₹280b, we found that the median CEO total compensation was ₹38m. This suggests that Vedant Fashions remunerates its CEO largely in line with the industry average. Furthermore, Ravi Modi directly owns ₹31b worth of shares in the company, implying that they are deeply invested in the company's success.

Talking in terms of the industry, salary represented approximately 98% of total compensation out of all the companies we analyzed, while other remuneration made up 2% of the pie. In Vedant Fashions' case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Vedant Fashions Limited's Growth

Vedant Fashions Limited's earnings per share (EPS) grew 2.2% per year over the last three years. Its revenue is up 10% over the last year.

This revenue growth could really point to a brighter future. And the modest growth in EPS isn't bad, either. So while we'd stop just short of calling this a top performer, but we think it is well worth watching. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Vedant Fashions Limited Been A Good Investment?

The return of -40% over three years would not have pleased Vedant Fashions Limited shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

Shareholders have not seen their shares grow in value, rather they have seen their shares decline. The stock's movement is disjointed with the company's earnings growth, which ideally should move in the same direction. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. 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.

If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Vedant Fashions.

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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.