We Think Shareholders Are Less Likely To Approve A Large Pay Rise For Radico Khaitan Limited's (NSE:RADICO) CEO For Now

Key Insights

• Radico Khaitan to hold its Annual General Meeting on 8th of August
• Salary of ₹118.1m is part of CEO Lalit Khaitan's total remuneration
• Total compensation is 326% above industry average
• Over the past three years, Radico Khaitan's EPS grew by 15% and over the past three years, the total shareholder return was 211%

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Performance at Radico Khaitan Limited (NSE:RADICO) has been reasonably good and CEO Lalit Khaitan has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 8th of August, 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 want to keep CEO compensation within reason.

See our latest analysis for Radico Khaitan

How Does Total Compensation For Lalit Khaitan Compare With Other Companies In The Industry?

According to our data, Radico Khaitan Limited has a market capitalization of ₹380b, and paid its CEO total annual compensation worth ₹136m over the year to March 2025. That's a modest increase of 5.2% on the prior year. Notably, the salary which is ₹118.1m, represents most of the total compensation being paid.

On examining similar-sized companies in the Indian Beverage industry with market capitalizations between ₹174b and ₹558b, we discovered that the median CEO total compensation of that group was ₹32m. This suggests that Lalit Khaitan is paid more than the median for the industry. Moreover, Lalit Khaitan also holds ₹784m worth of Radico Khaitan stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, roughly 97% of total compensation represents salary and 3% is other remuneration. It's interesting to note that Radico Khaitan 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.

A Look at Radico Khaitan Limited's Growth Numbers

Radico Khaitan Limited has seen its earnings per share (EPS) increase by 15% a year over the past three years. In the last year, its revenue is up 37%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Radico Khaitan Limited Been A Good Investment?

Boasting a total shareholder return of 211% over three years, Radico Khaitan Limited has done well by shareholders. 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...

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.

If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Radico Khaitan.

Important note: Radico Khaitan is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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.