It Looks Like Shareholders Would Probably Approve Shankara Building Products Limited's (NSE:SHANKARA) CEO Compensation Package

Key Insights

• Shankara Building Products to hold its Annual General Meeting on 24th of June
• Total pay for CEO Sukumar Srinivas includes ₹9.49m salary
• The overall pay is comparable to the industry average
• Shankara Building Products' EPS grew by 28% over the past three years while total shareholder return over the past three years was 62%

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The performance at Shankara Building Products Limited (NSE:SHANKARA) has been quite strong recently and CEO Sukumar Srinivas has played a role in it. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 24th of June. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.

View our latest analysis for Shankara Building Products

Comparing Shankara Building Products Limited's CEO Compensation With The Industry

Our data indicates that Shankara Building Products Limited has a market capitalization of ₹26b, and total annual CEO compensation was reported as ₹11m for the year to March 2025. Notably, that's a decrease of 20% over the year before. We note that the salary portion, which stands at ₹9.49m constitutes the majority of total compensation received by the CEO.

On comparing similar companies from the Indian Specialty Retail industry with market caps ranging from ₹17b to ₹69b, we found that the median CEO total compensation was ₹12m. This suggests that Shankara Building Products remunerates its CEO largely in line with the industry average. Moreover, Sukumar Srinivas also holds ₹10b worth of Shankara Building Products stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Speaking on an industry level, all of total compensation represents salary, while non-salary remuneration is completely ignored. Shankara Building Products sets aside a smaller share of compensation for salary, in comparison to the overall industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Shankara Building Products Limited's Growth Numbers

Shankara Building Products Limited's earnings per share (EPS) grew 28% per year over the last three years. In the last year, its revenue is up 18%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Shankara Building Products Limited Been A Good Investment?

We think that the total shareholder return of 62%, over three years, would leave most Shankara Building Products Limited shareholders smiling. 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 solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

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 2 warning signs for Shankara Building Products that investors should think about before committing capital to this stock.

Switching gears from Shankara Building Products, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.