We Think Shareholders Are Less Likely To Approve A Large Pay Rise For The Ugar Sugar Works Limited's (NSE:UGARSUGAR) CEO For Now

Key Insights

• Ugar Sugar Works to hold its Annual General Meeting on 5th of August
• Total pay for CEO Niraj Shirgaokar includes ₹11.7m salary
• The total compensation is 861% higher than the average for the industry
• Ugar Sugar Works' EPS declined by 47% over the past three years while total shareholder loss over the past three years was 23%

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Shareholders of The Ugar Sugar Works Limited (NSE:UGARSUGAR) will have been dismayed by the negative share price return over the last three years. Per share earnings growth is also lacking, despite revenue growth. Shareholders will have a chance to take their concerns to the board at the next AGM on 5th of August and vote on resolutions including executive compensation, which studies show may have an impact on company performance. Here's why we think shareholders should hold off on a raise for the CEO at the moment.

Check out our latest analysis for Ugar Sugar Works

Comparing The Ugar Sugar Works Limited's CEO Compensation With The Industry

At the time of writing, our data shows that The Ugar Sugar Works Limited has a market capitalization of ₹5.1b, and reported total annual CEO compensation of ₹35m for the year to March 2025. Notably, that's a decrease of 66% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at ₹12m.

In comparison with other companies in the Indian Food industry with market capitalizations under ₹17b, the reported median total CEO compensation was ₹3.6m. This suggests that Niraj Shirgaokar is paid more than the median for the industry. What's more, Niraj Shirgaokar holds ₹10m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

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 Ugar Sugar Works allocates a smaller portion of compensation to salary in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

The Ugar Sugar Works Limited's Growth

Over the last three years, The Ugar Sugar Works Limited has shrunk its earnings per share by 47% per year. In the last year, its revenue is up 16%.

Investors would be a bit wary of companies that have lower EPS But in contrast the revenue growth is strong, suggesting future potential for EPS growth. It's hard to reach a conclusion about business performance right now. This may be one to watch. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has The Ugar Sugar Works Limited Been A Good Investment?

Given the total shareholder loss of 23% over three years, many shareholders in The Ugar Sugar Works Limited are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

The company's earnings haven't grown and possibly because of that, the stock has performed poorly, resulting in a loss for the company's shareholders. Shareholders will get the chance at the upcoming AGM to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We identified 3 warning signs for Ugar Sugar Works (2 are potentially serious!) that you should be aware of before investing here.

Switching gears from Ugar Sugar Works, 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.