We Think Shareholders Are Less Likely To Approve A Large Pay Rise For Apex Frozen Foods Limited's (NSE:APEX) CEO For Now

Key Insights

• Apex Frozen Foods will host its Annual General Meeting on 29th of September
• Salary of ₹12.3m is part of CEO Karuturi Chowdary's total remuneration
• The total compensation is 160% higher than the average for the industry
• Apex Frozen Foods' three-year loss to shareholders was 14% while its EPS was down 45% over the past three years

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In the past three years, the share price of Apex Frozen Foods Limited (NSE:APEX) has struggled to generate growth for its shareholders. Per share earnings growth is also poor, despite revenues growing. The AGM coming up on 29th of September will be an opportunity for shareholders to have their concerns addressed by the board and for them to exercise their influence on management through voting on resolutions such as executive remuneration. We think shareholders may be cautious of approving a pay rise for the CEO at the moment, based on our analysis below.

See our latest analysis for Apex Frozen Foods

Comparing Apex Frozen Foods Limited's CEO Compensation With The Industry

Our data indicates that Apex Frozen Foods Limited has a market capitalization of ₹7.7b, and total annual CEO compensation was reported as ₹12m for the year to March 2025. Notably, that's a decrease of 29% over the year before. It is worth noting that the CEO compensation consists entirely of the salary, worth ₹12m.

For comparison, other companies in the Indian Food industry with market capitalizations below ₹18b, reported a median total CEO compensation of ₹4.7m. This suggests that Karuturi Chowdary is paid more than the median for the industry. What's more, Karuturi Chowdary holds ₹2.4b worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Speaking on an industry level, all of total compensation represents salary, while non-salary remuneration is completely ignored. Speaking on a company level, Apex Frozen Foods prefers to tread along a traditional path, disbursing all compensation through a salary. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Apex Frozen Foods Limited's Growth

Over the last three years, Apex Frozen Foods Limited has shrunk its earnings per share by 45% per year. Its revenue is up 20% over the last year.

Investors would be a bit wary of companies that have lower EPS But in contrast the revenue growth is strong, suggesting future potential for EPS growth. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Apex Frozen Foods Limited Been A Good Investment?

With a three year total loss of 14% for the shareholders, Apex Frozen Foods Limited would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Apex Frozen Foods pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. The loss to shareholders over the past three years is certainly concerning and possibly has something to do with the fact that the company's earnings haven't grown. The upcoming AGM will provide shareholders the opportunity to revisit the company’s remuneration policies and evaluate if the board’s judgement and decision-making is aligned with that of the company’s shareholders.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 4 warning signs for Apex Frozen Foods that investors should look into moving forward.

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.