This Is Why K.C.P. Sugar and Industries Corporation Limited's (NSE:KCPSUGIND) CEO Compensation Looks Appropriate

Key Insights

• K.C.P. Sugar and Industries will host its Annual General Meeting on 25th of September
• CEO Irmgard Velagapudi Rao's total compensation includes salary of ₹4.80m
• Total compensation is similar to the industry average
• Over the past three years, K.C.P. Sugar and Industries' EPS grew by 0.5% and over the past three years, the total shareholder return was 46%

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Performance at K.C.P. Sugar and Industries Corporation Limited (NSE:KCPSUGIND) has been reasonably good and CEO Irmgard Velagapudi Rao 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 25th of September. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.

View our latest analysis for K.C.P. Sugar and Industries

Comparing K.C.P. Sugar and Industries Corporation Limited's CEO Compensation With The Industry

According to our data, K.C.P. Sugar and Industries Corporation Limited has a market capitalization of ₹3.7b, and paid its CEO total annual compensation worth ₹4.8m over 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 Food industry with market capitalizations below ₹18b, we found that the median total CEO compensation was ₹4.0m. This suggests that K.C.P. Sugar and Industries remunerates its CEO largely in line with the industry average. Furthermore, Irmgard Velagapudi Rao directly owns ₹60m worth of shares in the company, implying that they are deeply invested in the company's success.

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. At the company level, K.C.P. Sugar and Industries pays Irmgard Velagapudi Rao solely through a salary, preferring to go down a conventional route. 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.

K.C.P. Sugar and Industries Corporation Limited's Growth

Earnings per share at K.C.P. Sugar and Industries Corporation Limited are much the same as they were three years ago, albeit with slightly higher. In the last year, its revenue is down 17%.

We would argue that the lack of revenue growth in the last year is less than ideal, but it is good to see a modest EPS growth at least. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has K.C.P. Sugar and Industries Corporation Limited Been A Good Investment?

We think that the total shareholder return of 46%, over three years, would leave most K.C.P. Sugar and Industries Corporation Limited shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

K.C.P. Sugar and Industries pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, we still think that any proposed increase in CEO compensation will be examined closely to make sure the compensation is appropriate and linked to performance.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 2 warning signs for K.C.P. Sugar and Industries that investors should look into moving forward.

Switching gears from K.C.P. Sugar and Industries, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.