Shareholders May Be More Conservative With VA Tech Wabag Limited's (NSE:WABAG) CEO Compensation For Now
Key Insights
- VA Tech Wabag will host its Annual General Meeting on 12th of August
- Salary of ₹45.6m is part of CEO Rajiv Mittal's total remuneration
- The total compensation is 364% higher than the average for the industry
- VA Tech Wabag's EPS grew by 31% over the past three years while total shareholder return over the past three years was 528%
CEO Rajiv Mittal has done a decent job of delivering relatively good performance at VA Tech Wabag Limited (NSE:WABAG) recently. As shareholders go into the upcoming AGM on 12th of August, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still want to keep CEO compensation within reason.
See our latest analysis for VA Tech Wabag
How Does Total Compensation For Rajiv Mittal Compare With Other Companies In The Industry?
Our data indicates that VA Tech Wabag Limited has a market capitalization of ₹96b, and total annual CEO compensation was reported as ₹48m for the year to March 2025. We note that's an increase of 17% above last year. We note that the salary portion, which stands at ₹45.6m constitutes the majority of total compensation received by the CEO.
On comparing similar companies from the India Water Utilities industry with market caps ranging from ₹35b to ₹140b, we found that the median CEO total compensation was ₹10m. Hence, we can conclude that Rajiv Mittal is remunerated higher than the industry median. What's more, Rajiv Mittal holds ₹15b worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
| Component | 2025 | 2024 | Proportion (2025) |
| Salary | ₹46m | ₹39m | 94% |
| Other | ₹2.8m | ₹2.7m | 6% |
| Total Compensation | ₹48m | ₹41m | 100% |
On an industry level, around 69% of total compensation represents salary and 31% is other remuneration. It's interesting to note that VA Tech Wabag pays out a greater portion of remuneration through salary, compared to the industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
VA Tech Wabag Limited's Growth
VA Tech Wabag Limited's earnings per share (EPS) grew 31% per year over the last three years. It achieved revenue growth of 15% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has VA Tech Wabag Limited Been A Good Investment?
Most shareholders would probably be pleased with VA Tech Wabag Limited for providing a total return of 528% 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.
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, 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 is one thing, but it is also interesting to check if the CEO is buying or selling VA Tech Wabag (free visualization of insider trades).
Switching gears from VA Tech Wabag, 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.
Valuation is complex, but we're here to simplify it.
Discover if VA Tech Wabag might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
Access Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.