Shareholders May Not Be So Generous With Nuvoco Vistas Corporation Limited's (NSE:NUVOCO) CEO Compensation And Here's Why

Key Insights

• Nuvoco Vistas will host its Annual General Meeting on 25th of July
• Total pay for CEO Jay Krishnaswamy includes ₹81.9m salary
• The total compensation is 215% higher than the average for the industry
• Over the past three years, Nuvoco Vistas' EPS fell by 13% and over the past three years, the total shareholder return was 26%

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Despite positive share price growth of 26% for Nuvoco Vistas Corporation Limited (NSE:NUVOCO) over the last few years, earnings growth has been disappointing, which suggests something is amiss. These concerns will be at the front of shareholders' minds as they go into the AGM coming up on 25th of July. It would also be an opportunity for them to influence management through exercising their voting power on company resolutions, including CEO and executive remuneration, which could impact on firm performance in the future. From what we gathered, we think shareholders should be wary of raising CEO compensation until the company shows some marked improvement.

Check out our latest analysis for Nuvoco Vistas

How Does Total Compensation For Jay Krishnaswamy Compare With Other Companies In The Industry?

According to our data, Nuvoco Vistas Corporation Limited has a market capitalization of ₹138b, and paid its CEO total annual compensation worth ₹82m over the year to March 2025. That's mostly flat as compared to the prior year's compensation. It is worth noting that the CEO compensation consists entirely of the salary, worth ₹82m.

On examining similar-sized companies in the Indian Basic Materials industry with market capitalizations between ₹86b and ₹276b, we discovered that the median CEO total compensation of that group was ₹26m. This suggests that Jay Krishnaswamy is paid more than the median for the industry.

Talking in terms of the industry, salary represented approximately 86% of total compensation out of all the companies we analyzed, while other remuneration made up 14% of the pie. On a company level, Nuvoco Vistas prefers to reward its CEO through a salary, opting not to pay Jay Krishnaswamy through non-salary benefits. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at Nuvoco Vistas Corporation Limited's Growth Numbers

Over the last three years, Nuvoco Vistas Corporation Limited has shrunk its earnings per share by 13% per year. It saw its revenue drop 3.5% over the last year.

Overall this is not a very positive result for shareholders. And the fact that revenue is down year on year arguably paints an ugly picture. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. 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 Nuvoco Vistas Corporation Limited Been A Good Investment?

Nuvoco Vistas Corporation Limited has generated a total shareholder return of 26% over three years, so most shareholders would be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

To Conclude...

Nuvoco Vistas rewards its CEO solely through a salary, ignoring non-salary benefits completely. Shareholder returns, while positive, should be looked at along with earnings, which have not grown at all recently. This makes us think the share price momentum may slow in the future. In the upcoming AGM, shareholders will get the opportunity to discuss any concerns with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We did our research and identified 2 warning signs (and 1 which shouldn't be ignored) in Nuvoco Vistas we think you should know about.

Switching gears from Nuvoco Vistas, 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.