We Think Shareholders Are Less Likely To Approve A Large Pay Rise For CarTrade Tech Limited's (NSE:CARTRADE) CEO For Now
Key Insights
- CarTrade Tech will host its Annual General Meeting on 25th of September
- Salary of ₹72.2m is part of CEO Vinay Sanghi's total remuneration
- Total compensation is 69% above industry average
- CarTrade Tech's total shareholder return over the past three years was 267% while its EPS grew by 89% over the past three years
Performance at CarTrade Tech Limited (NSE:CARTRADE) has been reasonably good and CEO Vinay Sanghi 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 25th of September. However, some shareholders will still be cautious of paying the CEO excessively.
Check out our latest analysis for CarTrade Tech
Comparing CarTrade Tech Limited's CEO Compensation With The Industry
Our data indicates that CarTrade Tech Limited has a market capitalization of ₹114b, and total annual CEO compensation was reported as ₹106m for the year to March 2025. Notably, that's a decrease of 29% over the year before. Notably, the salary which is ₹72.2m, represents most of the total compensation being paid.
In comparison with other companies in the Indian Specialty Retail industry with market capitalizations ranging from ₹88b to ₹282b, the reported median CEO total compensation was ₹63m. This suggests that Vinay Sanghi is paid more than the median for the industry. Furthermore, Vinay Sanghi directly owns ₹3.0b worth of shares in the company, implying that they are deeply invested in the company's success.
| Component | 2025 | 2024 | Proportion (2025) |
| Salary | ₹72m | ₹72m | 68% |
| Other | ₹34m | ₹78m | 32% |
| Total Compensation | ₹106m | ₹149m | 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 0.00666756% of the pie. CarTrade Tech pays a modest slice of remuneration through salary, as compared to the broader industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
CarTrade Tech Limited's Growth
Over the past three years, CarTrade Tech Limited has seen its earnings per share (EPS) grow by 89% per year. In the last year, its revenue is up 23%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. 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 CarTrade Tech Limited Been A Good Investment?
Most shareholders would probably be pleased with CarTrade Tech Limited for providing a total return of 267% over three years. 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.
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, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 1 warning sign for CarTrade Tech that investors should think about before committing capital to this stock.
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.
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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.