Shareholders May Not Be So Generous With Bajaj Finserv Ltd.'s (NSE:BAJAJFINSV) CEO Compensation And Here's Why

Key Insights

• Bajaj Finserv to hold its Annual General Meeting on 25th of July
• Salary of ₹374.4m is part of CEO Sanjiv Bajaj's total remuneration
• Total compensation is 129% above industry average
• Bajaj Finserv's EPS grew by 25% over the past three years while total shareholder return over the past three years was 59%

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Performance at Bajaj Finserv Ltd. (NSE:BAJAJFINSV) has been reasonably good and CEO Sanjiv Bajaj has done a decent job of steering the company in the right direction. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 25th of July. However, some shareholders will still be cautious of paying the CEO excessively.

View our latest analysis for Bajaj Finserv

Comparing Bajaj Finserv Ltd.'s CEO Compensation With The Industry

Our data indicates that Bajaj Finserv Ltd. has a market capitalization of ₹3.2t, and total annual CEO compensation was reported as ₹374m for the year to March 2025. We note that's an increase of 18% above last year. It is worth noting that the CEO compensation consists entirely of the salary, worth ₹374m.

For comparison, other companies in the Indian Diversified Financial industry with market capitalizations above ₹689b, reported a median total CEO compensation of ₹164m. This suggests that Sanjiv Bajaj is paid more than the median for the industry. Furthermore, Sanjiv Bajaj directly owns ₹9.3b worth of shares in the company, implying that they are deeply invested in the company's success.

Talking in terms of the industry, salary represents all of total compensation among the companies we analyzed, while other remuneration is, interestingly, completely ignored. On a company level, Bajaj Finserv prefers to reward its CEO through a salary, opting not to pay Sanjiv Bajaj through non-salary benefits. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Bajaj Finserv Ltd.'s Growth

Bajaj Finserv Ltd. has seen its earnings per share (EPS) increase by 25% a year over the past three years. It achieved revenue growth of 21% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Bajaj Finserv Ltd. Been A Good Investment?

Boasting a total shareholder return of 59% over three years, Bajaj Finserv Ltd. has done well by shareholders. 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.

In Summary...

Bajaj Finserv rewards its CEO solely through a salary, ignoring non-salary benefits completely. The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 2 warning signs for Bajaj Finserv that investors should be aware of in a dynamic business environment.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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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.