Increases to Hindustan Foods Limited's (NSE:HNDFDS) CEO Compensation Might Cool off for now

Key Insights

• Hindustan Foods' Annual General Meeting to take place on 23rd of September
• Salary of ₹17.2m is part of CEO Sameer Kothari's total remuneration
• The total compensation is 30% higher than the average for the industry
• Hindustan Foods' total shareholder return over the past three years was 15% while its EPS grew by 30% over the past three years

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CEO Sameer Kothari has done a decent job of delivering relatively good performance at Hindustan Foods Limited (NSE:HNDFDS) recently. 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 23rd of September. However, some shareholders will still be cautious of paying the CEO excessively.

View our latest analysis for Hindustan Foods

Comparing Hindustan Foods Limited's CEO Compensation With The Industry

According to our data, Hindustan Foods Limited has a market capitalization of ₹65b, and paid its CEO total annual compensation worth ₹42m over the year to March 2025. This means that the compensation hasn't changed much from last year. We think total compensation is more important but our data shows that the CEO salary is lower, at ₹17m.

For comparison, other companies in the Indian Food industry with market capitalizations ranging between ₹35b and ₹141b had a median total CEO compensation of ₹33m. Hence, we can conclude that Sameer Kothari is remunerated higher than the industry median. What's more, Sameer Kothari holds ₹6.6b worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2025	2024	Proportion (2025)
Salary	₹17m	₹17m	40%
Other	₹25m	₹25m	60%
Total Compensation	₹42m	₹43m	100%

Speaking on an industry level, all of total compensation represents salary, while non-salary remuneration is completely ignored. Hindustan Foods pays a modest slice of remuneration through salary, as compared to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at Hindustan Foods Limited's Growth Numbers

Hindustan Foods Limited's earnings per share (EPS) grew 30% per year over the last three years. Its revenue is up 23% 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. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Hindustan Foods Limited Been A Good Investment?

Hindustan Foods Limited has served shareholders reasonably well, with a total return of 15% over three years. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this 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 a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 1 warning sign for Hindustan Foods that you should be aware of before investing.

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.