We Take A Look At Why Som Distilleries & Breweries Limited's (NSE:SDBL) CEO Has Earned Their Pay Packet
Key Insights
- Som Distilleries & Breweries will host its Annual General Meeting on 29th of September
- CEO Jagdish Arora's total compensation includes salary of ₹38.8m
- Total compensation is similar to the industry average
- Som Distilleries & Breweries' EPS grew by 47% over the past three years while total shareholder return over the past three years was 218%
The performance at Som Distilleries & Breweries Limited (NSE:SDBL) has been quite strong recently and CEO Jagdish Arora has played a role in it. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 29th of September. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. In light of the great performance, we discuss the case why we think CEO compensation is not excessive.
View our latest analysis for Som Distilleries & Breweries
How Does Total Compensation For Jagdish Arora Compare With Other Companies In The Industry?
Our data indicates that Som Distilleries & Breweries Limited has a market capitalization of ₹29b, and total annual CEO compensation was reported as ₹39m for the year to March 2025. We note that's an increase of 92% above last year. It is worth noting that the CEO compensation consists entirely of the salary, worth ₹39m.
On comparing similar companies from the Indian Beverage industry with market caps ranging from ₹18b to ₹71b, we found that the median CEO total compensation was ₹39m. This suggests that Som Distilleries & Breweries remunerates its CEO largely in line with the industry average. Moreover, Jagdish Arora also holds ₹7.0b worth of Som Distilleries & Breweries stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
| Component | 2025 | 2024 | Proportion (2025) |
| Salary | ₹39m | ₹20m | 100% |
| Other | - | - | - |
| Total Compensation | ₹39m | ₹20m | 100% |
Speaking on an industry level, all of total compensation represents salary, while non-salary remuneration is completely ignored. At the company level, Som Distilleries & Breweries pays Jagdish Arora solely through a salary, preferring to go down a conventional route. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
Som Distilleries & Breweries Limited's Growth
Som Distilleries & Breweries Limited has seen its earnings per share (EPS) increase by 47% a year over the past three years. In the last year, its revenue is up 3.2%.
This demonstrates that the company has been improving recently and is good news for the shareholders. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Som Distilleries & Breweries Limited Been A Good Investment?
Most shareholders would probably be pleased with Som Distilleries & Breweries Limited for providing a total return of 218% over three years. 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...
Som Distilleries & Breweries pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.
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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.