Shareholders May Not Be So Generous With Capital Trust Limited's (NSE:CAPTRUST) CEO Compensation And Here's Why

Key Insights

• Capital Trust will host its Annual General Meeting on 20th of September
• Salary of ₹17.9m is part of CEO Yogen Khosla's total remuneration
• The overall pay is 498% above the industry average
• Capital Trust's EPS grew by 25% over the past three years while total shareholder loss over the past three years was 55%

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In the past three years, the share price of Capital Trust Limited (NSE:CAPTRUST) has struggled to grow and now shareholders are sitting on a loss. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 20th of September. They could also influence management through voting on resolutions such as executive remuneration. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.

See our latest analysis for Capital Trust

Comparing Capital Trust Limited's CEO Compensation With The Industry

At the time of writing, our data shows that Capital Trust Limited has a market capitalization of ₹729m, and reported total annual CEO compensation of ₹18m for the year to March 2025. This means that the compensation hasn't changed much from last year. Notably, the salary of ₹18m is the entirety of the CEO compensation.

On comparing similar-sized companies in the Indian Consumer Finance industry with market capitalizations below ₹18b, we found that the median total CEO compensation was ₹3.0m. Accordingly, our analysis reveals that Capital Trust Limited pays Yogen Khosla north of the industry median. Furthermore, Yogen Khosla directly owns ₹251m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2025	2024	Proportion (2025)
Salary	₹18m	₹18m	100%
Other	-	-	-
Total Compensation	₹18m	₹18m	100%

Talking in terms of the industry, salary represented approximately 95% of total compensation out of all the companies we analyzed, while other remuneration made up 5% of the pie. On a company level, Capital Trust prefers to reward its CEO through a salary, opting not to pay Yogen Khosla 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 Capital Trust Limited's Growth Numbers

Capital Trust Limited's earnings per share (EPS) grew 25% per year over the last three years. In the last year, its revenue is down 17%.

This demonstrates that the company has been improving recently and is good news for the shareholders. While it would be good to see revenue growth, profits matter more in the end. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Capital Trust Limited Been A Good Investment?

The return of -55% over three years would not have pleased Capital Trust Limited shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

Capital Trust rewards its CEO solely through a salary, ignoring non-salary benefits completely. Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. The stock's movement is disjointed with the company's earnings growth, which ideally should move in the same direction. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. These concerns should be addressed at the upcoming AGM, where shareholders can question the board and evaluate if their judgement and decision making is still in line with their expectations.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 1 warning sign for Capital Trust that investors should think about before committing capital to this stock.

Important note: Capital Trust is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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.