We Think Shareholders Are Less Likely To Approve A Large Pay Rise For Emmbi Industries Limited's (NSE:EMMBI) CEO For Now

Key Insights

• Emmbi Industries' Annual General Meeting to take place on 20th of September
• CEO Makrand Appalwar's total compensation includes salary of ₹7.80m
• The total compensation is 62% higher than the average for the industry
• Over the past three years, Emmbi Industries' EPS fell by 31% and over the past three years, the total shareholder return was 4.4%

We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

The anaemic share price growth at Emmbi Industries Limited (NSE:EMMBI) over the past few years has probably not impressed shareholders and may be due to earnings not growing over that period. These concerns will be at the front of shareholders' minds as they go into the AGM coming up on 20th of September. One way that shareholders can influence managerial decisions is through voting on CEO and executive remuneration packages, which studies show could impact company performance. From the data that we gathered, we think that shareholders should hold off on a raise on CEO compensation until performance starts to show some improvement.

See our latest analysis for Emmbi Industries

Comparing Emmbi Industries Limited's CEO Compensation With The Industry

At the time of writing, our data shows that Emmbi Industries Limited has a market capitalization of ₹2.0b, and reported total annual CEO compensation of ₹7.8m for the year to March 2025. That is, the compensation was roughly the same as last year. It is worth noting that the CEO compensation consists entirely of the salary, worth ₹7.8m.

For comparison, other companies in the Indian Packaging industry with market capitalizations below ₹18b, reported a median total CEO compensation of ₹4.8m. This suggests that Makrand Appalwar is paid more than the median for the industry. Furthermore, Makrand Appalwar directly owns ₹515m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2025	2024	Proportion (2025)
Salary	₹7.8m	₹7.8m	100%
Other	-	-	-
Total Compensation	₹7.8m	₹7.8m	100%

Talking in terms of the industry, salary represents all of total compensation among the companies we analyzed, while other remuneration is, interestingly, completely ignored. Speaking on a company level, Emmbi Industries prefers to tread along a traditional path, disbursing all compensation through a salary. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at Emmbi Industries Limited's Growth Numbers

Emmbi Industries Limited has reduced its earnings per share by 31% a year over the last three years. It achieved revenue growth of 9.0% over the last year.

Overall this is not a very positive result for shareholders. The modest increase in revenue in the last year isn't enough to make us overlook the disappointing change in EPS. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 Emmbi Industries Limited Been A Good Investment?

Emmbi Industries Limited has not done too badly by shareholders, with a total return of 4.4%, over three years. It would be nice to see that metric improve in the future. As a result, investors in the company might be reluctant about agreeing to increase CEO pay in the future, before seeing an improvement on their returns.

To Conclude...

Emmbi Industries rewards its CEO solely through a salary, ignoring non-salary benefits completely. While it's true that the share price growth hasn't been bad, it's hard to overlook the lack of earnings growth and this makes us question whether there will be any strong catalyst for the stock to improve. Shareholders should make the most of the coming opportunity to question the board on key concerns they may have and revisit their investment thesis with regards to the company.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. In our study, we found 5 warning signs for Emmbi Industries you should be aware of, and 2 of them make us uncomfortable.

Important note: Emmbi Industries 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.