We Think Shareholders Are Less Likely To Approve A Large Pay Rise For Vidhi Specialty Food Ingredients Limited's (NSE:VIDHIING) CEO For Now

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. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 30 September 2022. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

Check out our latest analysis for Vidhi Specialty Food Ingredients

Comparing Vidhi Specialty Food Ingredients Limited's CEO Compensation With The Industry

According to our data, Vidhi Specialty Food Ingredients Limited has a market capitalization of ₹20b, and paid its CEO total annual compensation worth ₹26m over the year to March 2022. We note that's an increase of 28% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at ₹6.0m.

In comparison with other companies in the industry with market capitalizations ranging from ₹8.1b to ₹32b, the reported median CEO total compensation was ₹19m. Hence, we can conclude that Bipin Manek is remunerated higher than the industry median. What's more, Bipin Manek holds ₹5.7b worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2022	2021	Proportion (2022)
Salary	₹6.0m	₹6.0m	23%
Other	₹20m	₹14m	77%
Total Compensation	₹26m	₹20m	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. 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 Vidhi Specialty Food Ingredients Limited's Growth Numbers

Vidhi Specialty Food Ingredients Limited has seen its earnings per share (EPS) increase by 25% a year over the past three years. It achieved revenue growth of 68% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. 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 Vidhi Specialty Food Ingredients Limited Been A Good Investment?

Boasting a total shareholder return of 549% over three years, Vidhi Specialty Food Ingredients Limited has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

Shareholders may want to check for free if Vidhi Specialty Food Ingredients insiders are buying or selling shares.

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.