Should Shareholders Reconsider Salona Cotspin Limited's (NSE:SALONA) CEO Compensation Package?

Key Insights

• Salona Cotspin will host its Annual General Meeting on 19th of September
• CEO Shyamlal Agarwala's total compensation includes salary of ₹10.5m
• The overall pay is 215% above the industry average
• Salona Cotspin's EPS declined by 52% over the past three years while total shareholder loss over the past three years was 4.3%

AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early.

Shareholders will probably not be too impressed with the underwhelming results at Salona Cotspin Limited (NSE:SALONA) recently. At the upcoming AGM on 19th of September, shareholders can hear from the board including their plans for turning around performance. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. From our analysis, we think CEO compensation may need a review in light of the recent performance.

View our latest analysis for Salona Cotspin

Comparing Salona Cotspin Limited's CEO Compensation With The Industry

Our data indicates that Salona Cotspin Limited has a market capitalization of ₹1.3b, and total annual CEO compensation was reported as ₹11m for the year to March 2025. This was the same amount the CEO received in the prior year. Notably, the salary which is ₹10.5m, represents most of the total compensation being paid.

In comparison with other companies in the Indian Luxury industry with market capitalizations under ₹18b, the reported median total CEO compensation was ₹3.6m. Hence, we can conclude that Shyamlal Agarwala is remunerated higher than the industry median.

Component	2025	2024	Proportion (2025)
Salary	₹10m	₹10m	93%
Other	₹840k	₹840k	7%
Total Compensation	₹11m	₹11m	100%

On an industry level, around 99% of total compensation represents salary and 1% is other remuneration. Although there is a difference in how total compensation is set, Salona Cotspin more or less reflects the market in terms of setting the salary. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Salona Cotspin Limited's Growth Numbers

Over the last three years, Salona Cotspin Limited has shrunk its earnings per share by 52% per year. Its revenue is down 18% over the previous year.

Few shareholders would be pleased to read that EPS have declined. And the fact that revenue is down year on year arguably paints an ugly picture. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. 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 Salona Cotspin Limited Been A Good Investment?

Given the total shareholder loss of 4.3% over three years, many shareholders in Salona Cotspin Limited are probably rather dissatisfied, to say the least. 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, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. In our study, we found 5 warning signs for Salona Cotspin you should be aware of, and 2 of them are a bit unpleasant.

Important note: Salona Cotspin 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.