Here's Why Shareholders May Want To Be Cautious With Increasing Jayant Agro-Organics Limited's (NSE:JAYAGROGN) CEO Pay Packet

Key Insights

• Jayant Agro-Organics will host its Annual General Meeting on 26th of July
• CEO Hemant Udeshi's total compensation includes salary of ₹11.2m
• The total compensation is 107% higher than the average for the industry
• Over the past three years, Jayant Agro-Organics' EPS fell by 15% and over the past three years, the total shareholder return was 22%

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Under the guidance of CEO Hemant Udeshi, Jayant Agro-Organics Limited (NSE:JAYAGROGN) has performed reasonably well recently. As shareholders go into the upcoming AGM on 26th of July, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders will still be cautious of paying the CEO excessively.

See our latest analysis for Jayant Agro-Organics

Comparing Jayant Agro-Organics Limited's CEO Compensation With The Industry

According to our data, Jayant Agro-Organics Limited has a market capitalization of ₹7.8b, and paid its CEO total annual compensation worth ₹12m over the year to March 2025. That's a notable increase of 14% on last year. We note that the salary portion, which stands at ₹11.2m constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the Indian Chemicals industry with market capitalizations under ₹17b, the reported median total CEO compensation was ₹5.9m. This suggests that Hemant Udeshi is paid more than the median for the industry. Moreover, Hemant Udeshi also holds ₹28m worth of Jayant Agro-Organics stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, roughly 85% of total compensation represents salary and 15% is other remuneration. Our data reveals that Jayant Agro-Organics allocates salary more or less in line with the wider market. 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.

Jayant Agro-Organics Limited's Growth

Over the last three years, Jayant Agro-Organics Limited has shrunk its earnings per share by 15% per year. It achieved revenue growth of 18% over the last year.

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. It's hard to reach a conclusion about business performance right now. This may be one to watch. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Jayant Agro-Organics Limited Been A Good Investment?

Jayant Agro-Organics Limited has served shareholders reasonably well, with a total return of 22% over three years. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary...

Some shareholders will be pleased by the relatively good results, however, the results could still be improved. EPS growth is still weak, and until that picks up, shareholders may find it hard to approve a pay rise for the CEO, since they are already paid above the average in their industry.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 2 warning signs for Jayant Agro-Organics that you should be aware of before investing.

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.