Here's Why Shareholders Should Examine Greenpanel Industries Limited's (NSE:GREENPANEL) CEO Compensation Package More Closely

Key Insights

• Greenpanel Industries to hold its Annual General Meeting on 6th of August
• Total pay for CEO Shobhan Mittal includes ₹62.9m salary
• The total compensation is 522% higher than the average for the industry
• Greenpanel Industries' EPS declined by 33% over the past three years while total shareholder loss over the past three years was 28%

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Greenpanel Industries Limited (NSE:GREENPANEL) has not performed well recently and CEO Shobhan Mittal will probably need to up their game. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 6th 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 Greenpanel Industries

Comparing Greenpanel Industries Limited's CEO Compensation With The Industry

Our data indicates that Greenpanel Industries Limited has a market capitalization of ₹39b, and total annual CEO compensation was reported as ₹65m for the year to March 2025. Notably, that's a decrease of 29% over the year before. Notably, the salary which is ₹62.9m, represents most of the total compensation being paid.

For comparison, other companies in the Indian Forestry industry with market capitalizations ranging between ₹17b and ₹70b had a median total CEO compensation of ₹10m. Hence, we can conclude that Shobhan Mittal is remunerated higher than the industry median. What's more, Shobhan Mittal holds ₹5.3b worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Speaking on an industry level, nearly 91% of total compensation represents salary, while the remainder of 9% is other remuneration. Greenpanel Industries has gone down a largely traditional route, paying Shobhan Mittal a high salary, giving it preference over non-salary benefits. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Greenpanel Industries Limited's Growth

Over the last three years, Greenpanel Industries Limited has shrunk its earnings per share by 33% per year. In the last year, its revenue is down 8.4%.

The decline in EPS is a bit concerning. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Greenpanel Industries Limited Been A Good Investment?

Since shareholders would have lost about 28% over three years, some Greenpanel Industries Limited investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

Shobhan receives almost all of their compensation through a salary. Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 1 warning sign for Greenpanel Industries that investors should think about before committing capital to this stock.

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.