This Is Why Camlin Fine Sciences Limited's (NSE:CAMLINFINE) CEO Compensation Looks Appropriate

Key Insights

• Camlin Fine Sciences' Annual General Meeting to take place on 8th of August
• CEO Ashish Dandekar's total compensation includes salary of ₹15.4m
• The overall pay is comparable to the industry average
• Camlin Fine Sciences' total shareholder return over the past three years was 140% while its EPS was down 7.6% over the past three years

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The share price of Camlin Fine Sciences Limited (NSE:CAMLINFINE) has increased significantly over the past few years. However, the earnings growth has not kept up with the share price momentum, suggesting that some other factors may be driving the price direction. Some of these issues will occupy shareholders' minds as the AGM rolls around on 8th of August. One way that shareholders can influence managerial decisions is through voting on CEO and executive remuneration packages, which studies show could impact company performance. In our analysis below, we show why shareholders may consider holding off a raise for the CEO's compensation until company performance improves.

Check out our latest analysis for Camlin Fine Sciences

How Does Total Compensation For Ashish Dandekar Compare With Other Companies In The Industry?

According to our data, Camlin Fine Sciences Limited has a market capitalization of ₹51b, and paid its CEO total annual compensation worth ₹28m over the year to March 2025. This means that the compensation hasn't changed much from last year. We note that the salary of ₹15.4m makes up a sizeable portion of the total compensation received by the CEO.

For comparison, other companies in the Indian Chemicals industry with market capitalizations ranging between ₹18b and ₹70b had a median total CEO compensation of ₹24m. So it looks like Camlin Fine Sciences compensates Ashish Dandekar in line with the median for the industry. Moreover, Ashish Dandekar also holds ₹5.4b worth of Camlin Fine Sciences stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Talking in terms of the industry, salary represented approximately 85% of total compensation out of all the companies we analyzed, while other remuneration made up 15% of the pie. Camlin Fine Sciences sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Camlin Fine Sciences Limited's Growth Numbers

Camlin Fine Sciences Limited has reduced its earnings per share by 7.6% a year over the last three years. Its revenue is up 15% over the last year.

Few shareholders would be pleased to read that EPS have declined. And while it's good to see some good revenue growth recently, the growth isn't really fast enough for us to put aside my concerns around EPS. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. 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 Camlin Fine Sciences Limited Been A Good Investment?

Boasting a total shareholder return of 140% over three years, Camlin Fine Sciences Limited has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

Despite the strong returns on shareholders' investments, the fact that earnings have failed to grow makes us skeptical about the stock keeping up its current momentum. The upcoming AGM will provide shareholders the opportunity to revisit the company’s remuneration policies and evaluate if the board’s judgement and decision-making is aligned with that of the company’s shareholders.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We've identified 3 warning signs for Camlin Fine Sciences that investors should be aware of in a dynamic business environment.

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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.