Key Insights
- TARC will host its Annual General Meeting on 25th of September
- Total pay for CEO Amar Sarin includes ₹7.20m salary
- The overall pay is comparable to the industry average
- Over the past three years, TARC's EPS fell by 6.7% and over the past three years, the total shareholder return was 302%
Performance at TARC Limited (NSE:TARC) has been reasonably good and CEO Amar Sarin has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 25th of September, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. We present our case of why we think CEO compensation looks fair.
View our latest analysis for TARC
Comparing TARC Limited's CEO Compensation With The Industry
At the time of writing, our data shows that TARC Limited has a market capitalization of ₹51b, and reported total annual CEO compensation of ₹12m for the year to March 2025. This was the same as last year. Notably, the salary which is ₹7.20m, represents a considerable chunk of the total compensation being paid.
On comparing similar companies from the Indian Real Estate industry with market caps ranging from ₹18b to ₹70b, we found that the median CEO total compensation was ₹15m. So it looks like TARC compensates Amar Sarin in line with the median for the industry. Moreover, Amar Sarin also holds ₹16b worth of TARC stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
| Component | 2025 | 2024 | Proportion (2025) |
| Salary | ₹7.2m | ₹7.2m | 60% |
| Other | ₹4.8m | ₹4.8m | 40% |
| Total Compensation | ₹12m | ₹12m | 100% |
Speaking on an industry level, all of total compensation represents salary, while non-salary remuneration is completely ignored. TARC sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
TARC Limited's Growth
Over the last three years, TARC Limited has shrunk its earnings per share by 6.7% per year. Its revenue is up 79% over the last year.
Investors would be a bit wary of companies that have lower EPS But in contrast the revenue growth is strong, suggesting future potential for EPS growth. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has TARC Limited Been A Good Investment?
Most shareholders would probably be pleased with TARC Limited for providing a total return of 302% 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.
In Summary...
Some shareholders will be pleased by the relatively good results, however, the results could still be improved. Despite robust revenue growth, until EPS growth improves, shareholders may be hesitant to increase CEO pay by too much.
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 TARC 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.
Valuation is complex, but we're here to simplify it.
Discover if TARC might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
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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.