It's Unlikely That Vardhman Special Steels Limited's (NSE:VSSL) CEO Will See A Huge Pay Rise This Year

Key Insights

• Vardhman Special Steels will host its Annual General Meeting on 19th of September
• Salary of ₹13.8m is part of CEO Sachit Jain's total remuneration
• Total compensation is 551% above industry average
• Vardhman Special Steels' total shareholder return over the past three years was 125% while its EPS grew by 5.1% over the past three years

Under the guidance of CEO Sachit Jain, Vardhman Special Steels Limited (NSE:VSSL) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 19th of September. However, some shareholders may still want to keep CEO compensation within reason.

View our latest analysis for Vardhman Special Steels

How Does Total Compensation For Sachit Jain Compare With Other Companies In The Industry?

At the time of writing, our data shows that Vardhman Special Steels Limited has a market capitalization of ₹23b, and reported total annual CEO compensation of ₹87m for the year to March 2024. We note that's a small decrease of 3.9% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at ₹14m.

For comparison, other companies in the Indian Metals and Mining industry with market capitalizations ranging between ₹8.4b and ₹34b had a median total CEO compensation of ₹13m. Accordingly, our analysis reveals that Vardhman Special Steels Limited pays Sachit Jain north of the industry median. Moreover, Sachit Jain also holds ₹3.2b worth of Vardhman Special Steels stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2024	2023	Proportion (2024)
Salary	₹14m	₹14m	16%
Other	₹73m	₹77m	84%
Total Compensation	₹87m	₹91m	100%

Talking in terms of the industry, salary represented approximately 100% of total compensation out of all the companies we analyzed, while other remuneration made up 0.12132977% of the pie. Vardhman Special Steels pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Vardhman Special Steels Limited's Growth Numbers

Vardhman Special Steels Limited's earnings per share (EPS) grew 5.1% per year over the last three years. In the last year, its revenue changed by just 0.5%.

We generally like to see a little 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. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Vardhman Special Steels Limited Been A Good Investment?

We think that the total shareholder return of 125%, over three years, would leave most Vardhman Special Steels Limited shareholders smiling. 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...

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, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 1 warning sign for Vardhman Special Steels that investors should look into moving forward.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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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.