We Think Shareholders Are Less Likely To Approve A Large Pay Rise For Insecticides (India) Limited's (NSE:INSECTICID) CEO For Now

Key Insights

• Insecticides (India) will host its Annual General Meeting on 23rd of September
• Total pay for CEO Rajesh Aggarwal includes ₹9.33m salary
• The overall pay is 39% above the industry average
• Over the past three years, Insecticides (India)'s EPS fell by 9.0% and over the past three years, the total shareholder return was 52%

Performance at Insecticides (India) Limited (NSE:INSECTICID) has been reasonably good and CEO Rajesh Aggarwal has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 23rd of September, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still want to keep CEO compensation within reason.

View our latest analysis for Insecticides (India)

Comparing Insecticides (India) Limited's CEO Compensation With The Industry

According to our data, Insecticides (India) Limited has a market capitalization of ₹15b, and paid its CEO total annual compensation worth ₹33m over the year to March 2023. That's a notable decrease of 21% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at ₹9.3m.

For comparison, other companies in the Indian Chemicals industry with market capitalizations ranging between ₹8.3b and ₹33b had a median total CEO compensation of ₹24m. This suggests that Rajesh Aggarwal is paid more than the median for the industry. Furthermore, Rajesh Aggarwal directly owns ₹4.7b worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2023	2022	Proportion (2023)
Salary	₹9.3m	₹9.0m	28%
Other	₹24m	₹33m	72%
Total Compensation	₹33m	₹42m	100%

On an industry level, roughly 86% of total compensation represents salary and 14% is other remuneration. Insecticides (India) sets aside a smaller share of compensation for salary, in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Insecticides (India) Limited's Growth

Insecticides (India) Limited has reduced its earnings per share by 9.0% a year over the last three years. In the last year, its revenue is up 18%.

Investors would be a bit wary of companies that have lower EPS On the other hand, the strong revenue growth suggests the business is growing. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Insecticides (India) Limited Been A Good Investment?

Most shareholders would probably be pleased with Insecticides (India) Limited for providing a total return of 52% over three years. 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...

Some shareholders will be pleased by the relatively good results, however, the results could still be improved. Until EPS growth picks back up, we think shareholders may find it hard to justify increasing CEO pay given that they are already paid above industry average.

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 2 warning signs for Insecticides (India) that you should be aware of before investing.

Switching gears from Insecticides (India), if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.