Shareholders Will Likely Find Sical Logistics Limited's (NSE:SICALLOG) CEO Compensation Acceptable

Key Insights

• Sical Logistics' Annual General Meeting to take place on 30th of September
• Total pay for CEO Seshadri Rajappan includes ₹5.41m salary
• The total compensation is 38% less than the average for the industry
• Over the past three years, Sical Logistics' EPS grew by 94% and over the past three years, the total loss to shareholders 10%

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Performance at Sical Logistics Limited (NSE:SICALLOG) has been rather uninspiring recently and shareholders may be wondering how CEO Seshadri Rajappan plans to fix this. They will get a chance to exercise their voting power to influence the future direction of the company in the next AGM on 30th of September. Setting appropriate executive remuneration to align with the interests of shareholders may also be a way to influence the company performance in the long run. We have prepared some analysis below to show that CEO compensation looks to be reasonable.

View our latest analysis for Sical Logistics

How Does Total Compensation For Seshadri Rajappan Compare With Other Companies In The Industry?

At the time of writing, our data shows that Sical Logistics Limited has a market capitalization of ₹7.5b, and reported total annual CEO compensation of ₹5.4m for the year to March 2025. That's a fairly small increase of 6.1% over the previous year. Notably, the salary of ₹5.4m is the entirety of the CEO compensation.

In comparison with other companies in the India Infrastructure industry with market capitalizations under ₹18b, the reported median total CEO compensation was ₹8.8m. This suggests that Seshadri Rajappan is paid below the industry median.

On an industry level, around 88% of total compensation represents salary and 12% is other remuneration. On a company level, Sical Logistics prefers to reward its CEO through a salary, opting not to pay Seshadri Rajappan through non-salary benefits. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

Sical Logistics Limited's Growth

Sical Logistics Limited has seen its earnings per share (EPS) increase by 94% a year over the past three years. In the last year, its revenue is up 44%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Sical Logistics Limited Been A Good Investment?

Given the total shareholder loss of 10% over three years, many shareholders in Sical Logistics Limited are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Sical Logistics rewards its CEO solely through a salary, ignoring non-salary benefits completely. The lacklustre share price returns is rather divergent to the robust growth in EPS, suggesting that there may be other factors weighing on it apart from fundamentals. In the upcoming AGM, shareholders will get the opportunity to discuss any concerns with the board and assess if the board's plan is likely to improve company performance.

CEO compensation can have a massive impact on performance, but it's just one element. We've identified 1 warning sign for Sical Logistics that investors should be aware of in a dynamic business environment.

Switching gears from Sical Logistics, 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.