Increases to Krishana Phoschem Limited's (NSE:KRISHANA) CEO Compensation Might Cool off for now

Key Insights

• Krishana Phoschem to hold its Annual General Meeting on 20th of September
• CEO Praveen Ostwal's total compensation includes salary of ₹19.2m
• The total compensation is 143% higher than the average for the industry
• Krishana Phoschem's EPS grew by 17% over the past three years while total shareholder return over the past three years was 190%

Performance at Krishana Phoschem Limited (NSE:KRISHANA) has been reasonably good and CEO Praveen Ostwal has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 20th 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.

Check out our latest analysis for Krishana Phoschem

Comparing Krishana Phoschem Limited's CEO Compensation With The Industry

Our data indicates that Krishana Phoschem Limited has a market capitalization of ₹15b, and total annual CEO compensation was reported as ₹42m for the year to March 2024. Notably, that's an increase of 68% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at ₹19m.

In comparison with other companies in the Indian Chemicals industry with market capitalizations ranging from ₹8.4b to ₹34b, the reported median CEO total compensation was ₹17m. Hence, we can conclude that Praveen Ostwal is remunerated higher than the industry median. What's more, Praveen Ostwal holds ₹483m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2024	2023	Proportion (2024)
Salary	₹19m	₹17m	46%
Other	₹23m	₹8.1m	54%
Total Compensation	₹42m	₹25m	100%

Speaking on an industry level, nearly 89% of total compensation represents salary, while the remainder of 11% is other remuneration. Krishana Phoschem pays a modest slice of remuneration through salary, as compared to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Krishana Phoschem Limited's Growth

Krishana Phoschem Limited's earnings per share (EPS) grew 17% per year over the last three years. In the last year, its revenue is up 146%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Krishana Phoschem Limited Been A Good Investment?

Boasting a total shareholder return of 190% over three years, Krishana Phoschem Limited has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. That's why we did our research, and identified 2 warning signs for Krishana Phoschem (of which 1 shouldn't be ignored!) that you should know about in order to have a holistic understanding of the stock.

Switching gears from Krishana Phoschem, 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.