Here's Why Shareholders May Want To Be Cautious With Increasing Crest Ventures Limited's (NSE:CREST) CEO Pay Packet

Key Insights

• Crest Ventures to hold its Annual General Meeting on 30th of September
• CEO Vijay Choraria's total compensation includes salary of ₹4.80m
• The total compensation is 150% higher than the average for the industry
• Over the past three years, Crest Ventures' EPS fell by 44% and over the past three years, the total shareholder return was 125%

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The share price of Crest Ventures Limited (NSE:CREST) has increased significantly over the past few years. However, the earnings growth has not kept up with the share price momentum, suggesting that some other factors may be driving the price direction. The upcoming AGM on 30th of September may be an opportunity for shareholders to bring up any concerns they may have for the board’s attention. 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. In our analysis below, we show why shareholders may consider holding off a raise for the CEO's compensation until company performance improves.

Check out our latest analysis for Crest Ventures

Comparing Crest Ventures Limited's CEO Compensation With The Industry

At the time of writing, our data shows that Crest Ventures Limited has a market capitalization of ₹11b, and reported total annual CEO compensation of ₹4.8m for the year to March 2025. There was no change in the compensation compared to last year. Notably, the salary of ₹4.8m is the entirety of the CEO compensation.

On comparing similar-sized companies in the Indian Diversified Financial industry with market capitalizations below ₹18b, we found that the median total CEO compensation was ₹1.9m. Hence, we can conclude that Vijay Choraria is remunerated higher than the industry median. Furthermore, Vijay Choraria directly owns ₹537m 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, Crest Ventures prefers to reward its CEO through a salary, opting not to pay Vijay Choraria through non-salary benefits. 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.

Crest Ventures Limited's Growth

Crest Ventures Limited has reduced its earnings per share by 44% a year over the last three years. It saw its revenue drop 17% over the last year.

Few shareholders would be pleased to read that EPS have declined. And the fact that revenue is down year on year arguably paints an ugly picture. These factors suggest that the business performance wouldn't really justify a high pay packet 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 Crest Ventures Limited Been A Good Investment?

We think that the total shareholder return of 125%, over three years, would leave most Crest Ventures 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.

In Summary...

Crest Ventures rewards its CEO solely through a salary, ignoring non-salary benefits completely. 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. 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.

Whatever your view on compensation, you might want to check if insiders are buying or selling Crest Ventures shares (free trial).

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.