Increases to Navneet Education Limited's (NSE:NAVNETEDUL) CEO Compensation Might Cool off for now

Key Insights

• Navneet Education's Annual General Meeting to take place on 29th of September
• CEO Sunil Gala's total compensation includes salary of ₹17.4m
• The overall pay is 101% above the industry average
• Navneet Education's total shareholder return over the past three years was 34% while its EPS grew by 55% over the past three years

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Performance at Navneet Education Limited (NSE:NAVNETEDUL) has been reasonably good and CEO Sunil Gala 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 29th of September. However, some shareholders will still be cautious of paying the CEO excessively.

Check out our latest analysis for Navneet Education

Comparing Navneet Education Limited's CEO Compensation With The Industry

At the time of writing, our data shows that Navneet Education Limited has a market capitalization of ₹36b, and reported total annual CEO compensation of ₹20m for the year to March 2025. We note that's an increase of 8.1% above last year. Notably, the salary which is ₹17.4m, represents most of the total compensation being paid.

For comparison, other companies in the Indian Media industry with market capitalizations ranging between ₹18b and ₹71b had a median total CEO compensation of ₹10m. Hence, we can conclude that Sunil Gala is remunerated higher than the industry median. Furthermore, Sunil Gala directly owns ₹2.0b worth of shares in the company, implying that they are deeply invested in the company's success.

Speaking on an industry level, nearly 100% of total compensation represents salary, while the remainder of 0.30108504% is other remuneration. Navneet Education sets aside a smaller share of compensation for salary, in comparison to the overall industry. 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 Navneet Education Limited's Growth Numbers

Over the past three years, Navneet Education Limited has seen its earnings per share (EPS) grow by 55% per year. Its revenue is up 22% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Navneet Education Limited Been A Good Investment?

Most shareholders would probably be pleased with Navneet Education Limited for providing a total return of 34% 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...

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. 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.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We identified 3 warning signs for Navneet Education (1 can't be ignored!) that you should be aware of before investing here.

Important note: Navneet Education is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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.