Here's Why Shareholders May Want To Be Cautious With Increasing Jay Shree Tea & Industries Limited's (NSE:JAYSREETEA) CEO Pay Packet

Key Insights

• Jay Shree Tea & Industries will host its Annual General Meeting on 12th of August
• Salary of ₹11.1m is part of CEO Jayashree Mohta's total remuneration
• Total compensation is 208% above industry average
• Jay Shree Tea & Industries' EPS grew by 37% over the past three years while total shareholder return over the past three years was 29%

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Under the guidance of CEO Jayashree Mohta, Jay Shree Tea & Industries Limited (NSE:JAYSREETEA) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 12th of August. However, some shareholders will still be cautious of paying the CEO excessively.

See our latest analysis for Jay Shree Tea & Industries

Comparing Jay Shree Tea & Industries Limited's CEO Compensation With The Industry

According to our data, Jay Shree Tea & Industries Limited has a market capitalization of ₹3.3b, and paid its CEO total annual compensation worth ₹11m over the year to March 2025. That's a notable increase of 8.8% on last year. Notably, the salary of ₹11m is the entirety of the CEO compensation.

In comparison with other companies in the Indian Food industry with market capitalizations under ₹18b, the reported median total CEO compensation was ₹3.6m. This suggests that Jayashree Mohta is paid more than the median for the industry. Furthermore, Jayashree Mohta directly owns ₹125m worth of shares in the company, implying that they are deeply invested in the company's success.

Talking in terms of the industry, salary represents all of total compensation among the companies we analyzed, while other remuneration is, interestingly, completely ignored. Speaking on a company level, Jay Shree Tea & Industries prefers to tread along a traditional path, disbursing all compensation through a salary. 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.

Jay Shree Tea & Industries Limited's Growth

Jay Shree Tea & Industries Limited's earnings per share (EPS) grew 37% per year over the last three years. In the last year, its revenue is up 16%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Jay Shree Tea & Industries Limited Been A Good Investment?

With a total shareholder return of 29% over three years, Jay Shree Tea & Industries Limited shareholders would, in general, be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary...

Jay Shree Tea & Industries pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed 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.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 4 warning signs (and 1 which makes us a bit uncomfortable) in Jay Shree Tea & Industries we think you should know about.

Important note: Jay Shree Tea & Industries 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.