Increases to CEO Compensation Might Be Put On Hold For Now at Clean Science and Technology Limited (NSE:CLEAN)

Key Insights

• Clean Science and Technology will host its Annual General Meeting on 11th of September
• Salary of ₹36.8m is part of CEO Ashok Boob's total remuneration
• The total compensation is 75% higher than the average for the industry
• Clean Science and Technology's EPS grew by 4.3% over the past three years while total shareholder loss over the past three years was 38%

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The underwhelming share price performance of Clean Science and Technology Limited (NSE:CLEAN) in the past three years would have disappointed many shareholders. However, what is unusual is that EPS growth has been positive, suggesting that the share price has diverged from fundamentals. These are some of the concerns that shareholders may want to bring up at the next AGM held on 11th of September. They could also influence management through voting on resolutions such as executive remuneration. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.

View our latest analysis for Clean Science and Technology

How Does Total Compensation For Ashok Boob Compare With Other Companies In The Industry?

Our data indicates that Clean Science and Technology Limited has a market capitalization of ₹123b, and total annual CEO compensation was reported as ₹95m for the year to March 2025. Notably, that's an increase of 10% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at ₹37m.

On examining similar-sized companies in the Indian Chemicals industry with market capitalizations between ₹88b and ₹282b, we discovered that the median CEO total compensation of that group was ₹54m. Accordingly, our analysis reveals that Clean Science and Technology Limited pays Ashok Boob north of the industry median. Moreover, Ashok Boob also holds ₹36b worth of Clean Science and Technology stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, around 84% of total compensation represents salary and 16% is other remuneration. Clean Science and Technology pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Clean Science and Technology Limited's Growth

Clean Science and Technology Limited has seen its earnings per share (EPS) increase by 4.3% a year over the past three years. It achieved revenue growth of 19% over the last year.

We think the revenue growth is good. And, while modest, the EPS growth is noticeable. Although we'll stop short of calling the stock a top performer, we think the company has potential. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Clean Science and Technology Limited Been A Good Investment?

With a total shareholder return of -38% over three years, Clean Science and Technology Limited shareholders would by and large be disappointed. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Shareholders have not seen their shares grow in value, rather they have seen their shares decline. A huge lag in share price growth when earnings have grown may indicate there could be other issues that are affecting the company at the moment that the market is focused on. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. The upcoming AGM will be a chance for shareholders to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.

CEO compensation can have a massive impact on performance, but it's just one element. We've identified 1 warning sign for Clean Science and Technology that investors should be aware of in a dynamic business environment.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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.