Increases to JK Lakshmi Cement Limited's (NSE:JKLAKSHMI) CEO Compensation Might Cool off for now

Key Insights

• JK Lakshmi Cement will host its Annual General Meeting on 26th of September
• Total pay for CEO Vinita Singhania includes ₹96.8m salary
• Total compensation is 245% above industry average
• Over the past three years, JK Lakshmi Cement's EPS fell by 5.7% and over the past three years, the total shareholder return was 60%

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JK Lakshmi Cement Limited (NSE:JKLAKSHMI) has exhibited strong share price growth in the past few years. However, its earnings growth has not kept up, suggesting that there may be something amiss. These concerns will be at the front of shareholders' minds as they go into the AGM coming up on 26th of September. One way that shareholders can influence managerial decisions is through voting on CEO and executive remuneration packages, which studies show could impact company performance. From what we gathered, we think shareholders should be wary of raising CEO compensation until the company shows some marked improvement.

See our latest analysis for JK Lakshmi Cement

How Does Total Compensation For Vinita Singhania Compare With Other Companies In The Industry?

At the time of writing, our data shows that JK Lakshmi Cement Limited has a market capitalization of ₹111b, and reported total annual CEO compensation of ₹250m for the year to March 2025. That's a notable decrease of 9.3% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at ₹97m.

For comparison, other companies in the Indian Basic Materials industry with market capitalizations ranging between ₹88b and ₹282b had a median total CEO compensation of ₹72m. Hence, we can conclude that Vinita Singhania is remunerated higher than the industry median. Moreover, Vinita Singhania also holds ₹227m worth of JK Lakshmi Cement 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	₹97m	₹88m	39%
Other	₹153m	₹187m	61%
Total Compensation	₹250m	₹275m	100%

On an industry level, roughly 91% of total compensation represents salary and 9% is other remuneration. JK Lakshmi Cement pays a modest slice of remuneration through salary, as compared 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.

A Look at JK Lakshmi Cement Limited's Growth Numbers

JK Lakshmi Cement Limited has reduced its earnings per share by 5.7% a year over the last three years. It saw its revenue drop 3.8% over the last year.

Few shareholders would be pleased to read that EPS have declined. And the impression is worse when you consider revenue is down year-on-year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has JK Lakshmi Cement Limited Been A Good Investment?

Most shareholders would probably be pleased with JK Lakshmi Cement Limited for providing a total return of 60% 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...

Although shareholders would be quite happy with the returns they have earned on their initial investment, earnings have failed to grow and this could mean returns may be hard to keep up. Shareholders should make the most of the coming opportunity to question the board on key concerns they may have and revisit their investment thesis with regards to the company.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 2 warning signs for JK Lakshmi Cement that investors should be aware of in a dynamic business environment.

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.