Increases to McLeod Russel India Limited's (NSE:MCLEODRUSS) CEO Compensation Might Cool off for now
Key Insights
- McLeod Russel India will host its Annual General Meeting on 26th of September
- Salary of ₹18.0m is part of CEO AK Khaitan's total remuneration
- The overall pay is 710% above the industry average
- Over the past three years, McLeod Russel India's EPS grew by 12% and over the past three years, the total shareholder return was 15%
Performance at McLeod Russel India Limited (NSE:MCLEODRUSS) has been reasonably good and CEO AK Khaitan has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 26th of September, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still be hesitant of being overly generous with CEO compensation.
See our latest analysis for McLeod Russel India
How Does Total Compensation For AK Khaitan Compare With Other Companies In The Industry?
Our data indicates that McLeod Russel India Limited has a market capitalization of ₹3.9b, and total annual CEO compensation was reported as ₹36m for the year to March 2025. That's a notable increase of 14% on last year. Notably, the salary which is ₹18.0m, represents a considerable chunk of the total compensation being paid.
In comparison with other companies in the Indian Food industry with market capitalizations under ₹18b, the reported median total CEO compensation was ₹4.4m. Hence, we can conclude that AK Khaitan is remunerated higher than the industry median. What's more, AK Khaitan holds ₹648k 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 | ₹18m | ₹16m | 50% |
| Other | ₹18m | ₹16m | 50% |
| Total Compensation | ₹36m | ₹32m | 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. In McLeod Russel India's case, non-salary compensation represents a greater slice of total remuneration, 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.
McLeod Russel India Limited's Growth
McLeod Russel India Limited's earnings per share (EPS) grew 12% per year over the last three years. Its revenue is up 8.9% 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. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has McLeod Russel India Limited Been A Good Investment?
McLeod Russel India Limited has served shareholders reasonably well, with a total return of 15% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.
To Conclude...
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, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.
We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. That's why we did our research, and identified 2 warning signs for McLeod Russel India (of which 1 is a bit unpleasant!) that you should know about in order to have a holistic understanding of the stock.
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.