Shareholders Will Probably Be Cautious Of Increasing Astron Paper & Board Mill Limited's (NSE:ASTRON) CEO Compensation At The Moment

Key Insights

• Astron Paper & Board Mill's Annual General Meeting to take place on 29th of September
• CEO Kirit Patel's total compensation includes salary of ₹4.80m
• The overall pay is 34% below the industry average
• Over the past three years, Astron Paper & Board Mill's EPS fell by 96% and over the past three years, the total loss to shareholders 25%

Performance at Astron Paper & Board Mill Limited (NSE:ASTRON) has not been particularly rosy recently and shareholders will likely be holding CEO Kirit Patel and the board accountable for this. There is an opportunity for shareholders to influence management to turn the performance around by voting on resolutions such as executive remuneration at the AGM coming up on 29th of September. The data we gathered below shows that CEO compensation looks acceptable for now.

View our latest analysis for Astron Paper & Board Mill

Comparing Astron Paper & Board Mill Limited's CEO Compensation With The Industry

According to our data, Astron Paper & Board Mill Limited has a market capitalization of ₹1.6b, and paid its CEO total annual compensation worth ₹4.8m over the year to March 2023. That's a notable increase of 26% on last year. It is worth noting that the CEO compensation consists entirely of the salary, worth ₹4.8m.

On comparing similar-sized companies in the Indian Forestry industry with market capitalizations below ₹17b, we found that the median total CEO compensation was ₹7.3m. That is to say, Kirit Patel is paid under the industry median. Furthermore, Kirit Patel directly owns ₹258m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2023	2022	Proportion (2023)
Salary	₹4.8m	₹3.8m	100%
Other	-	-	-
Total Compensation	₹4.8m	₹3.8m	100%

Speaking on an industry level, nearly 87% of total compensation represents salary, while the remainder of 13% is other remuneration. Speaking on a company level, Astron Paper & Board Mill 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.

Astron Paper & Board Mill Limited's Growth

Astron Paper & Board Mill Limited has reduced its earnings per share by 96% a year over the last three years. Its revenue is down 31% over the previous year.

The decline in EPS is a bit concerning. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Astron Paper & Board Mill Limited Been A Good Investment?

With a three year total loss of 25% for the shareholders, Astron Paper & Board Mill Limited would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Astron Paper & Board Mill rewards its CEO solely through a salary, ignoring non-salary benefits completely. Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. That's why we did our research, and identified 4 warning signs for Astron Paper & Board Mill (of which 2 don't sit too well with us!) that you should know about in order to have a holistic understanding of the stock.

Important note: Astron Paper & Board Mill 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.