It Looks Like The CEO Of Shriram Finance Limited (NSE:SHRIRAMFIN) May Be Underpaid Compared To Peers
Key Insights
- Shriram Finance will host its Annual General Meeting on 18th of July
- Total pay for CEO Yalamati Chakravarti includes ₹12.0m salary
- Total compensation is 80% below industry average
- Shriram Finance's EPS grew by 35% over the past three years while total shareholder return over the past three years was 170%
Shareholders will be pleased by the impressive results for Shriram Finance Limited (NSE:SHRIRAMFIN) recently and CEO Yalamati Chakravarti has played a key role. At the upcoming AGM on 18th of July, they would be interested to hear about the company strategy going forward and get a chance to cast their votes on resolutions such as executive remuneration and other company matters. Let's take a look at why we think the CEO has done a good job and we'll present the case for a bump in pay.
Check out our latest analysis for Shriram Finance
How Does Total Compensation For Yalamati Chakravarti Compare With Other Companies In The Industry?
Our data indicates that Shriram Finance Limited has a market capitalization of ₹1.3t, and total annual CEO compensation was reported as ₹13m for the year to March 2025. That's a notable increase of 37% on last year. Notably, the salary which is ₹12.0m, represents most of the total compensation being paid.
On comparing similar companies in the Indian Consumer Finance industry with market capitalizations above ₹686b, we found that the median total CEO compensation was ₹66m. That is to say, Yalamati Chakravarti is paid under the industry median.
| Component | 2025 | 2024 | Proportion (2025) |
| Salary | ₹12m | ₹8.5m | 92% |
| Other | ₹1.1m | ₹967k | 8% |
| Total Compensation | ₹13m | ₹9.5m | 100% |
On an industry level, roughly 100% of total compensation represents salary and 0.06886621% is other remuneration. Although there is a difference in how total compensation is set, Shriram Finance more or less reflects the market in terms of setting the salary. 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.
A Look at Shriram Finance Limited's Growth Numbers
Shriram Finance Limited has seen its earnings per share (EPS) increase by 35% a year over the past three years. It achieved revenue growth of 16% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Shriram Finance Limited Been A Good Investment?
Most shareholders would probably be pleased with Shriram Finance Limited for providing a total return of 170% over three years. 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...
Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.
CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. In our study, we found 3 warning signs for Shriram Finance you should be aware of, and 2 of them are a bit unpleasant.
Important note: Shriram Finance 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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