Increases to Vardhman Polytex Limited's (NSE:VARDMNPOLY) CEO Compensation Might Cool off for now

Key Insights

• Vardhman Polytex to hold its Annual General Meeting on 28th of August
• CEO Adish Oswal's total compensation includes salary of ₹20.2m
• The overall pay is 459% above the industry average
• Over the past three years, Vardhman Polytex's EPS fell by 5.7% and over the past three years, the total shareholder return was 369%

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Vardhman Polytex Limited (NSE:VARDMNPOLY) has exhibited strong share price growth in the past few years. However, its earnings growth has not kept up, suggesting that there may be something amiss. Some of these issues will occupy shareholders' minds as the AGM rolls around on 28th of August. They will be able to influence managerial decisions through the exercise of their voting power on resolutions, such as CEO remuneration and other matters, which may influence future company prospects. From the data that we gathered, we think that shareholders should hold off on a raise on CEO compensation until performance starts to show some improvement.

See our latest analysis for Vardhman Polytex

How Does Total Compensation For Adish Oswal Compare With Other Companies In The Industry?

Our data indicates that Vardhman Polytex Limited has a market capitalization of ₹4.4b, and total annual CEO compensation was reported as ₹20m for the year to March 2025. That's a notable decrease of 26% on last year. Notably, the salary of ₹20m is the entirety of the CEO compensation.

On comparing similar-sized companies in the Indian Luxury industry with market capitalizations below ₹17b, we found that the median total CEO compensation was ₹3.6m. Accordingly, our analysis reveals that Vardhman Polytex Limited pays Adish Oswal north of the industry median. What's more, Adish Oswal holds ₹40m 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 97% of total compensation out of all the companies we analyzed, while other remuneration made up 3% of the pie. Speaking on a company level, Vardhman Polytex prefers to tread along a traditional path, disbursing all compensation through a salary. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Vardhman Polytex Limited's Growth

Vardhman Polytex Limited has reduced its earnings per share by 5.7% a year over the last three years. It saw its revenue drop 1.4% over the last year.

Few shareholders would be pleased to read that EPS have declined. And the impression is worse when you consider revenue is down year-on-year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Vardhman Polytex Limited Been A Good Investment?

We think that the total shareholder return of 369%, over three years, would leave most Vardhman Polytex Limited shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

To Conclude...

Vardhman Polytex pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. Although shareholders would be quite happy with the returns they have earned on their initial investment, earnings have failed to grow and this could mean returns may be hard to keep up. Shareholders should make the most of the coming opportunity to question the board on key concerns they may have and revisit their investment thesis with regards to the company.

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 6 warning signs for Vardhman Polytex you should be aware of, and 4 of them don't sit too well with us.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.