Shareholders May Be More Conservative With Kuantum Papers Limited's (NSE:KUANTUM) CEO Compensation For Now

Key Insights

• Kuantum Papers to hold its Annual General Meeting on 29th of August
• CEO Pavan Khaitan's total compensation includes salary of ₹38.4m
• Total compensation is 615% above industry average
• Over the past three years, Kuantum Papers' EPS grew by 18% and over the past three years, the total shareholder return was 36%

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Performance at Kuantum Papers Limited (NSE:KUANTUM) has been reasonably good and CEO Pavan Khaitan has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 29th of August, 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 Kuantum Papers

How Does Total Compensation For Pavan Khaitan Compare With Other Companies In The Industry?

According to our data, Kuantum Papers Limited has a market capitalization of ₹9.9b, and paid its CEO total annual compensation worth ₹53m over the year to March 2025. We note that's an increase of 17% above last year. Notably, the salary which is ₹38.4m, represents most of the total compensation being paid.

On comparing similar-sized companies in the Indian Forestry industry with market capitalizations below ₹18b, we found that the median total CEO compensation was ₹7.4m. Hence, we can conclude that Pavan Khaitan is remunerated higher than the industry median. Furthermore, Pavan Khaitan directly owns ₹167m worth of shares in the company, implying that they are deeply invested in the company's success.

Talking in terms of the industry, salary represented approximately 91% of total compensation out of all the companies we analyzed, while other remuneration made up 9% of the pie. In Kuantum Papers' case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. 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.

A Look at Kuantum Papers Limited's Growth Numbers

Kuantum Papers Limited has seen its earnings per share (EPS) increase by 18% a year over the past three years. Its revenue is down 11% over the previous year.

Shareholders would be glad to know that the company has improved itself over the last few years. While it would be good to see revenue growth, profits matter more in the end. 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 Kuantum Papers Limited Been A Good Investment?

We think that the total shareholder return of 36%, over three years, would leave most Kuantum Papers Limited shareholders smiling. 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.

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.

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 Kuantum Papers 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.