It Looks Like The CEO Of LT Foods Limited (NSE:LTFOODS) May Be Underpaid Compared To Peers

Key Insights

• LT Foods will host its Annual General Meeting on 30th of September
• CEO Ashwani Arora's total compensation includes salary of ₹16.1m
• The overall pay is 63% below the industry average
• Over the past three years, LT Foods' EPS grew by 23% and over the past three years, the total shareholder return was 298%

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The impressive results at LT Foods Limited (NSE:LTFOODS) recently will be great news for shareholders. At the upcoming AGM on 30th of September, they would be interested to hear about the company strategy going forward and get a chance to cast their votes on resolutions such as executive remuneration and other company matters. We think the CEO has done a pretty decent job and probably deserves a well-earned pay rise.

See our latest analysis for LT Foods

Comparing LT Foods Limited's CEO Compensation With The Industry

Our data indicates that LT Foods Limited has a market capitalization of ₹149b, and total annual CEO compensation was reported as ₹24m for the year to March 2025. That's a modest increase of 5.0% on the prior year. We note that the salary portion, which stands at ₹16.1m constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the Indian Food industry with market capitalizations ranging between ₹89b and ₹284b had a median total CEO compensation of ₹65m. Accordingly, LT Foods pays its CEO under the industry median. Moreover, Ashwani Arora also holds ₹9.9b worth of LT Foods stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Talking in terms of the industry, salary represents all of total compensation among the companies we analyzed, while other remuneration is, interestingly, completely ignored. It's interesting to note that LT Foods allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

LT Foods Limited's Growth

LT Foods Limited has seen its earnings per share (EPS) increase by 23% a year over the past three years. It achieved revenue growth of 13% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has LT Foods Limited Been A Good Investment?

We think that the total shareholder return of 298%, over three years, would leave most LT Foods 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 solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 1 warning sign for LT Foods that investors should think about before committing capital to this stock.

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.