It Looks Like Shareholders Would Probably Approve Sirca Paints India Limited's (NSE:SIRCA) CEO Compensation Package

Key Insights

• Sirca Paints India's Annual General Meeting to take place on 20th of September
• CEO Sanjay Agarwal's total compensation includes salary of ₹13.6m
• The overall pay is comparable to the industry average
• Sirca Paints India's EPS grew by 11% over the past three years while total shareholder return over the past three years was 58%

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We have been pretty impressed with the performance at Sirca Paints India Limited (NSE:SIRCA) recently and CEO Sanjay Agarwal deserves a mention for their role in it. Shareholders will have this at the front of their minds in the upcoming AGM on 20th of September. It is likely that the focus will be on company strategy going forward as shareholders hear from the board and cast their votes on resolutions such as executive remuneration and other matters. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.

Check out our latest analysis for Sirca Paints India

Comparing Sirca Paints India Limited's CEO Compensation With The Industry

According to our data, Sirca Paints India Limited has a market capitalization of ₹26b, and paid its CEO total annual compensation worth ₹15m over the year to March 2025. We note that's an increase of 9.4% above last year. Notably, the salary which is ₹13.6m, represents most of the total compensation being paid.

On comparing similar companies from the India Retail Distributors industry with market caps ranging from ₹8.8b to ₹35b, we found that the median CEO total compensation was ₹20m. From this we gather that Sanjay Agarwal is paid around the median for CEOs in the industry. Moreover, Sanjay Agarwal also holds ₹8.3b worth of Sirca Paints India 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	₹14m	₹12m	94%
Other	₹864k	₹1.3m	6%
Total Compensation	₹15m	₹13m	100%

On an industry level, it's fascinating to see that all of total compensation represents salary and non-salary benefits do not factor into the equation at all. Our data reveals that Sirca Paints India allocates salary more or less in line with the wider market. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Sirca Paints India Limited's Growth

Sirca Paints India Limited has seen its earnings per share (EPS) increase by 11% a year over the past three years. In the last year, its revenue is up 29%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. 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 Sirca Paints India Limited Been A Good Investment?

Boasting a total shareholder return of 58% over three years, Sirca Paints India Limited has done well by shareholders. 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...

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. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 1 warning sign for Sirca Paints India that investors should think about before committing capital to this stock.

Switching gears from Sirca Paints India, 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.