It's Unlikely That Kaveri Seed Company Limited's (NSE:KSCL) CEO Will See A Huge Pay Rise This Year

Key Insights

• Kaveri Seed's Annual General Meeting to take place on 30th of September
• CEO Gundavaram Venkata Rao's total compensation includes salary of ₹56.7m
• Total compensation is 126% above industry average
• Kaveri Seed's EPS grew by 18% over the past three years while total shareholder return over the past three years was 92%

CEO Gundavaram Venkata Rao has done a decent job of delivering relatively good performance at Kaveri Seed Company Limited (NSE:KSCL) 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 30th of September. However, some shareholders may still want to keep CEO compensation within reason.

See our latest analysis for Kaveri Seed

Comparing Kaveri Seed Company Limited's CEO Compensation With The Industry

Our data indicates that Kaveri Seed Company Limited has a market capitalization of ₹55b, and total annual CEO compensation was reported as ₹61m for the year to March 2024. That's a notable increase of 21% on last year. We note that the salary portion, which stands at ₹56.7m constitutes the majority of total compensation received by the CEO.

On comparing similar companies from the Indian Food industry with market caps ranging from ₹33b to ₹134b, we found that the median CEO total compensation was ₹27m. This suggests that Gundavaram Venkata Rao is paid more than the median for the industry. What's more, Gundavaram Venkata Rao holds ₹5.3b worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2024	2023	Proportion (2024)
Salary	₹57m	₹47m	93%
Other	₹4.0m	₹3.3m	7%
Total Compensation	₹61m	₹50m	100%

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. Kaveri Seed is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Kaveri Seed Company Limited's Growth Numbers

Kaveri Seed Company Limited has seen its earnings per share (EPS) increase by 18% a year over the past three years. Its revenue is up 8.4% 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 modest revenue growth, suggesting the underlying business is healthy. 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 Kaveri Seed Company Limited Been A Good Investment?

Most shareholders would probably be pleased with Kaveri Seed Company Limited for providing a total return of 92% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

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, 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 Kaveri Seed that you should be aware of before investing.

Switching gears from Kaveri Seed, 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.