We Think Shareholders Are Less Likely To Approve A Large Pay Rise For DMCC Speciality Chemicals Limited's (NSE:DMCC) CEO For Now

Key Insights

• DMCC Speciality Chemicals to hold its Annual General Meeting on 10th of September
• Salary of ₹14.7m is part of CEO Bimal Goculdas's total remuneration
• The overall pay is 242% above the industry average
• DMCC Speciality Chemicals' three-year loss to shareholders was 16% while its EPS grew by 12% over the past three years

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In the past three years, the share price of DMCC Speciality Chemicals Limited (NSE:DMCC) has struggled to grow and now shareholders are sitting on a loss. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. The AGM coming up on the 10th of September could be an opportunity for shareholders to bring these concerns to the board's attention. They could also influence management through voting on resolutions such as executive remuneration. We discuss below why we think shareholders should be cautious of approving a raise for the CEO at the moment.

View our latest analysis for DMCC Speciality Chemicals

Comparing DMCC Speciality Chemicals Limited's CEO Compensation With The Industry

At the time of writing, our data shows that DMCC Speciality Chemicals Limited has a market capitalization of ₹8.0b, and reported total annual CEO compensation of ₹21m for the year to March 2025. Notably, that's an increase of 16% over the year before. In particular, the salary of ₹14.7m, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the Indian Chemicals industry with market capitalizations under ₹18b, the reported median total CEO compensation was ₹6.0m. Accordingly, our analysis reveals that DMCC Speciality Chemicals Limited pays Bimal Goculdas north of the industry median. What's more, Bimal Goculdas holds ₹178m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Talking in terms of the industry, salary represented approximately 84% of total compensation out of all the companies we analyzed, while other remuneration made up 16% of the pie. DMCC Speciality Chemicals 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.

DMCC Speciality Chemicals Limited's Growth

DMCC Speciality Chemicals Limited has seen its earnings per share (EPS) increase by 12% a year over the past three years. Its revenue is up 44% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has DMCC Speciality Chemicals Limited Been A Good Investment?

With a three year total loss of 16% for the shareholders, DMCC Speciality Chemicals Limited would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

Shareholders have not seen their shares grow in value, rather they have seen their shares decline. The stock's movement is disjointed with the company's earnings growth, which ideally should move in the same direction. Shareholders would be keen to know what's holding the stock back when earnings have grown. These concerns should be addressed at the upcoming AGM, where shareholders can question the board and evaluate if their judgement and decision making is still in line with their expectations.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. In our study, we found 3 warning signs for DMCC Speciality Chemicals you should be aware of, and 1 of them makes us a bit uncomfortable.

Important note: DMCC Speciality Chemicals 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.