Increases to CEO Compensation Might Be Put On Hold For Now at V-Mart Retail Limited (NSE:VMART)

Key Insights

• V-Mart Retail's Annual General Meeting to take place on 29th of July
• Total pay for CEO Lalit Agarwal includes ₹11.3m salary
• The overall pay is 62% above the industry average
• Over the past three years, V-Mart Retail's EPS grew by 58% and over the past three years, the total shareholder return was 8.4%

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Performance at V-Mart Retail Limited (NSE:VMART) has been reasonably good and CEO Lalit Agarwal 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 July. However, some shareholders will still be cautious of paying the CEO excessively.

See our latest analysis for V-Mart Retail

How Does Total Compensation For Lalit Agarwal Compare With Other Companies In The Industry?

At the time of writing, our data shows that V-Mart Retail Limited has a market capitalization of ₹60b, and reported total annual CEO compensation of ₹24m for the year to March 2025. Notably, that's an increase of 28% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at ₹11m.

On comparing similar companies from the India Multiline Retail industry with market caps ranging from ₹35b to ₹138b, we found that the median CEO total compensation was ₹15m. Accordingly, our analysis reveals that V-Mart Retail Limited pays Lalit Agarwal north of the industry median. Furthermore, Lalit Agarwal directly owns ₹76m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, around 69% of total compensation represents salary and 31% is other remuneration. In V-Mart Retail's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at V-Mart Retail Limited's Growth Numbers

V-Mart Retail Limited has seen its earnings per share (EPS) increase by 58% a year over the past three years. It achieved revenue growth of 17% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has V-Mart Retail Limited Been A Good Investment?

V-Mart Retail Limited has generated a total shareholder return of 8.4% over three years, so most shareholders wouldn't be too disappointed. Although, there's always room to improve. Accordingly, a proposal to increase CEO remuneration without seeing an improvement in shareholder returns might not be met favorably by most shareholders.

To Conclude...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus 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.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 1 warning sign for V-Mart Retail that investors should be aware of in a dynamic business environment.

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.

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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.