Vidhi Specialty Food Ingredients Limited's (NSE:VIDHIING) CEO Compensation Looks Acceptable To Us And Here's Why

Key Insights

• Vidhi Specialty Food Ingredients will host its Annual General Meeting on 29th of September
• Salary of ₹6.00m is part of CEO Bipin Manek's total remuneration
• Total compensation is similar to the industry average
• Vidhi Specialty Food Ingredients' total shareholder return over the past three years was 276% while its EPS grew by 2.3% over the past three years

Performance at Vidhi Specialty Food Ingredients Limited (NSE:VIDHIING) has been reasonably good and CEO Bipin Manek has done a decent job of steering the company in the right direction. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 29th of September. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.

Check out our latest analysis for Vidhi Specialty Food Ingredients

How Does Total Compensation For Bipin Manek Compare With Other Companies In The Industry?

Our data indicates that Vidhi Specialty Food Ingredients Limited has a market capitalization of ₹21b, and total annual CEO compensation was reported as ₹23m for the year to March 2023. Notably, that's a decrease of 12% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at ₹6.0m.

On examining similar-sized companies in the Indian Chemicals industry with market capitalizations between ₹8.3b and ₹33b, we discovered that the median CEO total compensation of that group was ₹23m. From this we gather that Bipin Manek is paid around the median for CEOs in the industry. Moreover, Bipin Manek also holds ₹5.8b worth of Vidhi Specialty Food Ingredients stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2023	2022	Proportion (2023)
Salary	₹6.0m	₹6.0m	26%
Other	₹17m	₹20m	74%
Total Compensation	₹23m	₹26m	100%

Speaking on an industry level, nearly 86% of total compensation represents salary, while the remainder of 14% is other remuneration. In Vidhi Specialty Food Ingredients' case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at Vidhi Specialty Food Ingredients Limited's Growth Numbers

Vidhi Specialty Food Ingredients Limited's earnings per share (EPS) grew 2.3% per year over the last three years. Its revenue is down 35% over the previous year.

We would prefer it if there was revenue growth, but it is good to see a modest EPS growth at least. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Vidhi Specialty Food Ingredients Limited Been A Good Investment?

We think that the total shareholder return of 276%, over three years, would leave most Vidhi Specialty Food Ingredients Limited shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

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, we still think that any proposed increase in CEO compensation will be examined closely to make sure the compensation is appropriate and linked to performance.

So you may want to check if insiders are buying Vidhi Specialty Food Ingredients shares with their own money (free access).

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.