Shareholders May Be More Conservative With VRL Logistics Limited's (NSE:VRLLOG) CEO Compensation For Now

Key Insights

• VRL Logistics will host its Annual General Meeting on 5th of August
• Total pay for CEO Vijay Sankeshwar includes ₹30.4m salary
• The overall pay is 245% above the industry average
• Over the past three years, VRL Logistics' EPS grew by 27% and over the past three years, the total shareholder return was 91%

Performance at VRL Logistics Limited (NSE:VRLLOG) has been reasonably good and CEO Vijay Sankeshwar 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 5th of August. However, some shareholders may still want to keep CEO compensation within reason.

Check out our latest analysis for VRL Logistics

Comparing VRL Logistics Limited's CEO Compensation With The Industry

Our data indicates that VRL Logistics Limited has a market capitalization of ₹50b, and total annual CEO compensation was reported as ₹37m for the year to March 2024. Notably, that's a decrease of 22% over the year before. In particular, the salary of ₹30.4m, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the India Transportation industry with market capitalizations ranging between ₹17b and ₹67b had a median total CEO compensation of ₹11m. This suggests that Vijay Sankeshwar is paid more than the median for the industry. Moreover, Vijay Sankeshwar also holds ₹14b worth of VRL Logistics stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2024	2023	Proportion (2024)
Salary	₹30m	₹34m	82%
Other	₹6.5m	₹14m	18%
Total Compensation	₹37m	₹47m	100%

Speaking on an industry level, all of total compensation represents salary, while non-salary remuneration is completely ignored. VRL Logistics pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at VRL Logistics Limited's Growth Numbers

Over the past three years, VRL Logistics Limited has seen its earnings per share (EPS) grow by 27% per year. Its revenue is up 9.3% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. 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 VRL Logistics Limited Been A Good Investment?

Most shareholders would probably be pleased with VRL Logistics Limited for providing a total return of 91% 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.

In Summary...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay 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.

CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 1 warning sign for VRL Logistics that investors should look into moving forward.

Important note: VRL Logistics is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com