Shareholders May Not Be So Generous With Balrampur Chini Mills Limited's (NSE:BALRAMCHIN) CEO Compensation And Here's Why

Key Insights

• Balrampur Chini Mills to hold its Annual General Meeting on 30th of August
• Total pay for CEO Vivek Saraogi includes ₹43.6m salary
• The overall pay is 105% above the industry average
• Over the past three years, Balrampur Chini Mills' EPS grew by 2.0% and over the past three years, the total shareholder return was 70%

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Performance at Balrampur Chini Mills Limited (NSE:BALRAMCHIN) has been reasonably good and CEO Vivek Saraogi 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 30th of August. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

See our latest analysis for Balrampur Chini Mills

How Does Total Compensation For Vivek Saraogi Compare With Other Companies In The Industry?

According to our data, Balrampur Chini Mills Limited has a market capitalization of ₹118b, and paid its CEO total annual compensation worth ₹85m over the year to March 2025. This was the same amount the CEO received in the prior year. In particular, the salary of ₹43.6m, makes up a fairly large portion of the total compensation being paid to the CEO.

For comparison, other companies in the Indian Food industry with market capitalizations ranging between ₹87b and ₹279b had a median total CEO compensation of ₹41m. This suggests that Vivek Saraogi is paid more than the median for the industry. What's more, Vivek Saraogi holds ₹6.4b worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, it's fascinating to see that all of total compensation represents salary and non-salary benefits do not factor into the equation at all. Balrampur Chini Mills sets aside a smaller share of compensation for salary, in comparison to the overall industry. 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 Balrampur Chini Mills Limited's Growth Numbers

Balrampur Chini Mills Limited has seen its earnings per share (EPS) increase by 2.0% a year over the past three years. Its revenue is down 1.6% over the previous year.

We would argue that the lack of revenue growth in the last year is less than ideal, but the modest improvement in EPS is good. It's hard to reach a conclusion about business performance right now. This may be one to watch. 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 Balrampur Chini Mills Limited Been A Good Investment?

We think that the total shareholder return of 70%, over three years, would leave most Balrampur Chini Mills 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.

To Conclude...

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.

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 2 warning signs for Balrampur Chini Mills you should be aware of, and 1 of them is potentially serious.

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.