Shareholders May Not Be So Generous With Deepak Fertilisers And Petrochemicals Corporation Limited's (NSE:DEEPAKFERT) CEO Compensation And Here's Why

Key Insights

• Deepak Fertilisers And Petrochemicals will host its Annual General Meeting on 9th of September
• Total pay for CEO Sailesh Mehta includes ₹68.3m salary
• The total compensation is 680% higher than the average for the industry
• Deepak Fertilisers And Petrochemicals' EPS declined by 2.7% over the past three years while total shareholder return over the past three years was 72%

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Performance at Deepak Fertilisers And Petrochemicals Corporation Limited (NSE:DEEPAKFERT) has been reasonably good and CEO Sailesh Mehta has done a decent job of steering the company in the right direction. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 9th of September. However, some shareholders may still want to keep CEO compensation within reason.

See our latest analysis for Deepak Fertilisers And Petrochemicals

How Does Total Compensation For Sailesh Mehta Compare With Other Companies In The Industry?

Our data indicates that Deepak Fertilisers And Petrochemicals Corporation Limited has a market capitalization of ₹183b, and total annual CEO compensation was reported as ₹386m for the year to March 2025. We note that's an increase of 16% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at ₹68m.

For comparison, other companies in the Indian Chemicals industry with market capitalizations ranging between ₹88b and ₹282b had a median total CEO compensation of ₹49m. Accordingly, our analysis reveals that Deepak Fertilisers And Petrochemicals Corporation Limited pays Sailesh Mehta north of the industry median. Furthermore, Sailesh Mehta directly owns ₹169m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, roughly 84% of total compensation represents salary and 16% is other remuneration. Deepak Fertilisers And Petrochemicals pays a modest slice of remuneration through salary, as compared to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at Deepak Fertilisers And Petrochemicals Corporation Limited's Growth Numbers

Over the last three years, Deepak Fertilisers And Petrochemicals Corporation Limited has shrunk its earnings per share by 2.7% per year. Its revenue is up 23% over the last year.

The reduction in EPS, over three years, is arguably concerning. But in contrast the revenue growth is strong, suggesting future potential for EPS growth. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. 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 Deepak Fertilisers And Petrochemicals Corporation Limited Been A Good Investment?

We think that the total shareholder return of 72%, over three years, would leave most Deepak Fertilisers And Petrochemicals Corporation Limited shareholders smiling. 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...

Although the company has performed relatively well, we still think there are some areas that could be improved. We still think that some shareholders will be hesitant of increasing CEO pay until EPS growth improves, since they are already paid higher than the industry.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 2 warning signs for Deepak Fertilisers And Petrochemicals that investors should look into moving forward.

Switching gears from Deepak Fertilisers And Petrochemicals, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.