Shareholders May Be More Conservative With Indo Borax & Chemicals Limited's (NSE:INDOBORAX) CEO Compensation For Now

Key Insights

• Indo Borax & Chemicals will host its Annual General Meeting on 25th of September
• CEO Sajal Jain's total compensation includes salary of ₹15.4m
• The overall pay is 875% above the industry average
• Indo Borax & Chemicals' total shareholder return over the past three years was 74% while its EPS was down 0.6% over the past three years

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Indo Borax & Chemicals Limited (NSE:INDOBORAX) has exhibited strong share price growth in the past few years. However, its earnings growth has not kept up, suggesting that there may be something amiss. The upcoming AGM on 25th of September may be an opportunity for shareholders to bring up any concerns they may have for the board’s attention. 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.

View our latest analysis for Indo Borax & Chemicals

Comparing Indo Borax & Chemicals Limited's CEO Compensation With The Industry

According to our data, Indo Borax & Chemicals Limited has a market capitalization of ₹7.6b, and paid its CEO total annual compensation worth ₹60m over the year to March 2025. We note that's an increase of 13% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at ₹15m.

In comparison with other companies in the Indian Chemicals industry with market capitalizations under ₹18b, the reported median total CEO compensation was ₹6.1m. This suggests that Sajal Jain is paid more than the median for the industry. What's more, Sajal Jain holds ₹2.2b worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, roughly 84% of total compensation represents salary and 16% is other remuneration. It's interesting to note that Indo Borax & Chemicals allocates a smaller portion of compensation to salary in comparison 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.

Indo Borax & Chemicals Limited's Growth

Over the last three years, Indo Borax & Chemicals Limited has not seen its earnings per share change much, though they have deteriorated slightly. In the last year, its revenue is down 3.8%.

A lack of EPS improvement is not good to see. This is compounded by the fact revenue is actually down on last year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Indo Borax & Chemicals Limited Been A Good Investment?

Boasting a total shareholder return of 74% over three years, Indo Borax & Chemicals Limited has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

To Conclude...

Despite the strong returns on shareholders' investments, the fact that earnings have failed to grow makes us skeptical about the stock keeping up its current momentum. The upcoming AGM will provide shareholders the opportunity to revisit the company’s remuneration policies and evaluate if the board’s judgement and decision-making is aligned with that of the company’s shareholders.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 3 warning signs for Indo Borax & Chemicals that investors should think about before committing capital to this stock.

Important note: Indo Borax & 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.