It Looks Like Chemplast Sanmar Limited's (NSE:CHEMPLASTS) CEO May Expect Their Salary To Be Put Under The Microscope

Key Insights

• Chemplast Sanmar's Annual General Meeting to take place on 12th of August
• CEO Ramkumar Shankar's total compensation includes salary of ₹45.9m
• The total compensation is 37% higher than the average for the industry
• Over the past three years, Chemplast Sanmar's EPS fell by 125% and over the past three years, the total loss to shareholders 10%

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Shareholders will probably not be too impressed with the underwhelming results at Chemplast Sanmar Limited (NSE:CHEMPLASTS) recently. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 12th of August. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. The data we present below explains why we think CEO compensation is not consistent with recent performance.

View our latest analysis for Chemplast Sanmar

How Does Total Compensation For Ramkumar Shankar Compare With Other Companies In The Industry?

According to our data, Chemplast Sanmar Limited has a market capitalization of ₹67b, and paid its CEO total annual compensation worth ₹46m over the year to March 2025. Notably, that's a decrease of 16% over the year before. We note that the salary portion, which stands at ₹45.9m constitutes the majority of total compensation received by the CEO.

On comparing similar companies from the Indian Chemicals industry with market caps ranging from ₹35b to ₹140b, we found that the median CEO total compensation was ₹34m. Hence, we can conclude that Ramkumar Shankar is remunerated higher than the industry median.

On an industry level, around 85% of total compensation represents salary and 15% is other remuneration. Chemplast Sanmar is focused on going down a more traditional approach and is paying a higher portion of compensation through salary, as compared to non-salary benefits. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Chemplast Sanmar Limited's Growth Numbers

Chemplast Sanmar Limited has reduced its earnings per share by 125% a year over the last three years. In the last year, its revenue is up 5.6%.

Few shareholders would be pleased to read that EPS have declined. The fairly low revenue growth fails to impress given that the EPS is down. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Chemplast Sanmar Limited Been A Good Investment?

With a three year total loss of 10% for the shareholders, Chemplast Sanmar Limited would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

Chemplast Sanmar pays its CEO a majority of compensation through a salary. Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. 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.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 1 warning sign for Chemplast Sanmar that investors should look into moving forward.

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.