Here's Why Agarwal Industrial Corporation Limited's (NSE:AGARIND) CEO Might See A Pay Rise Soon
Key Insights
- Agarwal Industrial will host its Annual General Meeting on 22nd of September
- Total pay for CEO Jaiprakash Agarwal includes ₹9.00m salary
- Total compensation is 52% below industry average
- Over the past three years, Agarwal Industrial's EPS grew by 2.4% and over the past three years, the total shareholder return was 52%
Shareholders will probably not be disappointed by the robust results at Agarwal Industrial Corporation Limited (NSE:AGARIND) recently and they will be keeping this in mind as they go into the AGM on 22nd of September. They will probably be more interested in hearing the board discuss future initiatives to further improve the business as they vote on resolutions such as executive remuneration. Here is our take on why we think CEO compensation is fair and may even warrant a raise.
View our latest analysis for Agarwal Industrial
How Does Total Compensation For Jaiprakash Agarwal Compare With Other Companies In The Industry?
According to our data, Agarwal Industrial Corporation Limited has a market capitalization of ₹14b, and paid its CEO total annual compensation worth ₹9.0m over the year to March 2025. Notably, that's an increase of 20% over the year before. Notably, the salary of ₹9.0m is the entirety of the CEO compensation.
For comparison, other companies in the Indian Chemicals industry with market capitalizations ranging between ₹8.8b and ₹35b had a median total CEO compensation of ₹19m. Accordingly, Agarwal Industrial pays its CEO under the industry median. What's more, Jaiprakash Agarwal holds ₹1.0b 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 | ₹9.0m | ₹7.5m | 100% |
| Other | - | - | - |
| Total Compensation | ₹9.0m | ₹7.5m | 100% |
On an industry level, around 84% of total compensation represents salary and 16% is other remuneration. On a company level, Agarwal Industrial prefers to reward its CEO through a salary, opting not to pay Jaiprakash Agarwal through non-salary benefits. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
Agarwal Industrial Corporation Limited's Growth
Over the past three years, Agarwal Industrial Corporation Limited has seen its earnings per share (EPS) grow by 2.4% per year. It achieved revenue growth of 3.7% over the last year.
We're not particularly impressed by the revenue growth, but we're happy with the modest EPS growth. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. 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 Agarwal Industrial Corporation Limited Been A Good Investment?
Most shareholders would probably be pleased with Agarwal Industrial Corporation Limited for providing a total return of 52% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
To Conclude...
Agarwal Industrial pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. The company's overall performance, while not bad, could be better. Assuming the business continues to grow at a good clip, few shareholders would raise any objections to the CEO's remuneration. Rather, investors would more likely want to engage on discussions related to key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.
CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 2 warning signs for Agarwal Industrial that investors should look into moving forward.
Important note: Agarwal Industrial 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.