The Compensation For Kuantum Papers Limited's (NSE:KUANTUM) CEO Looks Deserved And Here's Why

Key Insights

• Kuantum Papers to hold its Annual General Meeting on 30th of August
• Salary of ₹26.9m is part of CEO Pavan Khaitan's total remuneration
• The overall pay is comparable to the industry average
• Over the past three years, Kuantum Papers' EPS grew by 83% and over the past three years, the total shareholder return was 88%

The performance at Kuantum Papers Limited (NSE:KUANTUM) has been quite strong recently and CEO Pavan Khaitan has played a role in it. Coming up to the next AGM on 30th of August, shareholders would be keeping this in mind. It is likely that the focus will be on company strategy going forward as shareholders hear from the board and cast their votes on resolutions such as executive remuneration and other matters. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.

See our latest analysis for Kuantum Papers

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

Our data indicates that Kuantum Papers Limited has a market capitalization of ₹13b, and total annual CEO compensation was reported as ₹45m for the year to March 2024. This means that the compensation hasn't changed much from last year. We note that the salary of ₹26.9m makes up a sizeable portion of the total compensation received by the CEO.

For comparison, other companies in the Indian Forestry industry with market capitalizations ranging between ₹8.4b and ₹34b had a median total CEO compensation of ₹38m. So it looks like Kuantum Papers compensates Pavan Khaitan in line with the median for the industry. Furthermore, Pavan Khaitan directly owns ₹219m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	₹27m	₹25m	60%
Other	₹18m	₹19m	40%
Total Compensation	₹45m	₹44m	100%

On an industry level, around 89% of total compensation represents salary and 11% is other remuneration. It's interesting to note that Kuantum Papers allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Kuantum Papers Limited's Growth Numbers

Kuantum Papers Limited's earnings per share (EPS) grew 83% per year over the last three years. Its revenue is down 13% over the previous year.

This demonstrates that the company has been improving recently and is good news for the shareholders. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Kuantum Papers Limited Been A Good Investment?

We think that the total shareholder return of 88%, over three years, would leave most Kuantum Papers Limited shareholders smiling. 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.

To Conclude...

The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 1 warning sign for Kuantum Papers that investors should be aware of in a dynamic business environment.

Switching gears from Kuantum Papers, 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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