We Think Some Shareholders May Hesitate To Increase Gulshan Polyols Limited's (NSE:GULPOLY) CEO Compensation

Key Insights

• Gulshan Polyols to hold its Annual General Meeting on 18th of September
• Total pay for CEO Ashwani Vats includes ₹8.58m salary
• The overall pay is 35% above the industry average
• Over the past three years, Gulshan Polyols' EPS fell by 26% and over the past three years, the total loss to shareholders 27%

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The underwhelming share price performance of Gulshan Polyols Limited (NSE:GULPOLY) in the past three years would have disappointed many shareholders. Per share earnings growth is also poor, despite revenues growing. The AGM coming up on 18th of September will be an opportunity for shareholders to have their concerns addressed by the board and for them to exercise their influence on management through voting on resolutions such as executive remuneration. Here's why we think shareholders should hold off on a raise for the CEO at the moment.

See our latest analysis for Gulshan Polyols

How Does Total Compensation For Ashwani Vats Compare With Other Companies In The Industry?

Our data indicates that Gulshan Polyols Limited has a market capitalization of ₹10b, and total annual CEO compensation was reported as ₹8.7m for the year to March 2025. This means that the compensation hasn't changed much from last year. We note that the salary portion, which stands at ₹8.58m constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the Indian Chemicals industry with market capitalizations below ₹18b, reported a median total CEO compensation of ₹6.4m. This suggests that Ashwani Vats is paid more than the median for the industry. What's more, Ashwani Vats holds ₹12m 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 82% of total compensation out of all the companies we analyzed, while other remuneration made up 18% of the pie. Investors will find it interesting that Gulshan Polyols pays the bulk of its rewards through a traditional salary, instead of 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.

Gulshan Polyols Limited's Growth

Gulshan Polyols Limited has reduced its earnings per share by 26% a year over the last three years. It achieved revenue growth of 40% over the last year.

The reduction in EPS, over three years, is arguably concerning. But on the other hand, revenue growth is strong, suggesting a brighter future. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. 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 Gulshan Polyols Limited Been A Good Investment?

Given the total shareholder loss of 27% over three years, many shareholders in Gulshan Polyols Limited are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Ashwani receives almost all of their compensation through a salary. The company's earnings haven't grown and possibly because of that, the stock has performed poorly, resulting in a loss for the company's shareholders. In the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan is in line with their expectations.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 2 warning signs for Gulshan Polyols 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.