We Think Shareholders May Want To Consider A Review Of SPL Industries Limited's (NSE:SPLIL) CEO Compensation Package

Key Insights

• SPL Industries' Annual General Meeting to take place on 29th of September
• CEO Mukesh Aggarwal's total compensation includes salary of ₹50.0m
• Total compensation is 1,285% above industry average
• SPL Industries' three-year loss to shareholders was 32% while its EPS was down 31% over the past three years

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Shareholders will probably not be too impressed with the underwhelming results at SPL Industries Limited (NSE:SPLIL) recently. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 29th of September. 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. We present the case why we think CEO compensation is out of sync with company performance.

Check out our latest analysis for SPL Industries

How Does Total Compensation For Mukesh Aggarwal Compare With Other Companies In The Industry?

According to our data, SPL Industries Limited has a market capitalization of ₹1.1b, and paid its CEO total annual compensation worth ₹50m over the year to March 2025. This was the same amount the CEO received in the prior year. It is worth noting that the CEO compensation consists entirely of the salary, worth ₹50m.

On comparing similar-sized companies in the Indian Luxury industry with market capitalizations below ₹18b, we found that the median total CEO compensation was ₹3.6m. Hence, we can conclude that Mukesh Aggarwal is remunerated higher than the industry median. What's more, Mukesh Aggarwal holds ₹228m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Talking in terms of the industry, salary represented approximately 99% of total compensation out of all the companies we analyzed, while other remuneration made up 1% of the pie. On a company level, SPL Industries prefers to reward its CEO through a salary, opting not to pay Mukesh Aggarwal through non-salary benefits. 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 SPL Industries Limited's Growth Numbers

Over the last three years, SPL Industries Limited has shrunk its earnings per share by 31% per year. It saw its revenue drop 38% over the last 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. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has SPL Industries Limited Been A Good Investment?

With a total shareholder return of -32% over three years, SPL Industries Limited shareholders would by and large be disappointed. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

SPL Industries rewards its CEO solely through a salary, ignoring non-salary benefits completely. Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a 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.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 2 warning signs (and 1 which makes us a bit uncomfortable) in SPL Industries we think you should know about.

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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.