Why We Think Welspun Living Limited's (NSE:WELSPUNLIV) CEO Compensation Is Not Excessive At All
Key Insights
- Welspun Living to hold its Annual General Meeting on 26th of September
- CEO Dipali Goenka's total compensation includes salary of ₹31.0m
- Total compensation is similar to the industry average
- Welspun Living's total shareholder return over the past three years was 13% while its EPS grew by 1.4% over the past three years
Performance at Welspun Living Limited (NSE:WELSPUNLIV) has been reasonably good and CEO Dipali Goenka has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 26th of September, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.
Check out our latest analysis for Welspun Living
How Does Total Compensation For Dipali Goenka Compare With Other Companies In The Industry?
According to our data, Welspun Living Limited has a market capitalization of ₹170b, and paid its CEO total annual compensation worth ₹41m over the year to March 2024. That's a modest increase of 4.0% on the prior year. We note that the salary portion, which stands at ₹31.0m constitutes the majority of total compensation received by the CEO.
For comparison, other companies in the Indian Luxury industry with market capitalizations ranging between ₹84b and ₹268b had a median total CEO compensation of ₹36m. This suggests that Welspun Living remunerates its CEO largely in line with the industry average. Moreover, Dipali Goenka also holds ₹132m worth of Welspun Living stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Component | 2024 | 2023 | Proportion (2024) |
Salary | ₹31m | ₹30m | 75% |
Other | ₹10m | ₹9.5m | 25% |
Total Compensation | ₹41m | ₹40m | 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. Welspun Living pays a modest slice of remuneration through salary, as compared to the broader industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.
Welspun Living Limited's Growth
Over the past three years, Welspun Living Limited has seen its earnings per share (EPS) grow by 1.4% per year. Its revenue is up 21% over the last year.
This revenue growth could really point to a brighter future. And the improvement in EPSis modest but respectable. Although we'll stop short of calling the stock a top performer, we think the company has potential. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Welspun Living Limited Been A Good Investment?
With a total shareholder return of 13% over three years, Welspun Living 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...
Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. However, we still think that any proposed increase in CEO compensation will be examined closely to make sure the compensation is appropriate and linked to performance.
Shareholders may want to check for free if Welspun Living insiders are buying or selling shares.
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.
About NSEI:WELSPUNLIV
Welspun Living
Engages in the manufacture and sale of home textile products in India and internationally.
Solid track record with excellent balance sheet.