Here's Why We Think Birla Corporation Limited's (NSE:BIRLACORPN) CEO Compensation Looks Fair for the time being

Key Insights

• Birla to hold its Annual General Meeting on 22nd of December
• Salary of ₹17.5m is part of CEO Sandip Ghose's total remuneration
• Total compensation is similar to the industry average
• Birla's EPS grew by 41% over the past three years while total shareholder return over the past three years was 5.4%

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Under the guidance of CEO Sandip Ghose, Birla Corporation Limited (NSE:BIRLACORPN) has performed reasonably well recently. As shareholders go into the upcoming AGM on 22nd of December, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.

See our latest analysis for Birla

How Does Total Compensation For Sandip Ghose Compare With Other Companies In The Industry?

Our data indicates that Birla Corporation Limited has a market capitalization of ₹84b, and total annual CEO compensation was reported as ₹63m for the year to March 2025. We note that's an increase of 11% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at ₹18m.

On examining similar-sized companies in the Indian Basic Materials industry with market capitalizations between ₹36b and ₹145b, we discovered that the median CEO total compensation of that group was ₹72m. So it looks like Birla compensates Sandip Ghose in line with the median for the industry.

Component	2025	2024	Proportion (2025)
Salary	₹18m	₹17m	28%
Other	₹45m	₹40m	72%
Total Compensation	₹63m	₹56m	100%

Speaking on an industry level, nearly 91% of total compensation represents salary, while the remainder of 9% is other remuneration. Birla pays a modest slice of remuneration through salary, as compared 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.

Birla Corporation Limited's Growth

Over the past three years, Birla Corporation Limited has seen its earnings per share (EPS) grow by 41% per year. It achieved revenue growth of 6.8% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent 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 Birla Corporation Limited Been A Good Investment?

Birla Corporation Limited has not done too badly by shareholders, with a total return of 5.4%, over three years. It would be nice to see that metric improve in the future. In light of that, investors might probably want to see an improvement on their returns before they feel generous about increasing the CEO remuneration.

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. In saying that, any proposed increase to CEO compensation will still be assessed on how reasonable it is based on performance and industry benchmarks.

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 Birla that you should be aware of before investing.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.