Shareholders May Not Be So Generous With Vardhman Textiles Limited's (NSE:VTL) CEO Compensation And Here's Why

Key Insights

• Vardhman Textiles' Annual General Meeting to take place on 24th of September
• Total pay for CEO Shri Oswal includes ₹11.9m salary
• The total compensation is 500% higher than the average for the industry
• Vardhman Textiles' EPS declined by 19% over the past three years while total shareholder return over the past three years was 30%

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Despite Vardhman Textiles Limited's (NSE:VTL) share price growing positively in the past few years, the per-share earnings growth has not grown to investors' expectations, suggesting that there could be other factors at play driving the share price. Some of these issues will occupy shareholders' minds as the AGM rolls around on 24th of September. One way that shareholders can influence managerial decisions is through voting on CEO and executive remuneration packages, which studies show could impact company performance. In our analysis below, we show why shareholders may consider holding off a raise for the CEO's compensation until company performance improves.

See our latest analysis for Vardhman Textiles

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

Our data indicates that Vardhman Textiles Limited has a market capitalization of ₹129b, and total annual CEO compensation was reported as ₹228m for the year to March 2025. That's a notable increase of 31% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at ₹12m.

In comparison with other companies in the Indian Luxury industry with market capitalizations ranging from ₹88b to ₹281b, the reported median CEO total compensation was ₹38m. This suggests that Shri Oswal is paid more than the median for the industry. Moreover, Shri Oswal also holds ₹1.3b worth of Vardhman Textiles stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2025	2024	Proportion (2025)
Salary	₹12m	₹11m	5%
Other	₹216m	₹163m	95%
Total Compensation	₹228m	₹174m	100%

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. Vardhman Textiles pays a modest slice of remuneration through salary, as compared to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at Vardhman Textiles Limited's Growth Numbers

Over the last three years, Vardhman Textiles Limited has shrunk its earnings per share by 19% per year. It achieved revenue growth of 3.9% over the last year.

The decline in EPS is a bit concerning. The modest increase in revenue in the last year isn't enough to make us overlook the disappointing change in EPS. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Vardhman Textiles Limited Been A Good Investment?

With a total shareholder return of 30% over three years, Vardhman Textiles Limited shareholders would, in general, be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

To Conclude...

While it's true that shareholders have owned decent returns, it's hard to overlook the lack of earnings growth and this makes us question whether these returns will continue. In the upcoming AGM, shareholders will get the opportunity to discuss any concerns with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 1 warning sign for Vardhman Textiles that investors should be aware of in a dynamic business environment.

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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.