Shareholders May Not Be So Generous With Orient Paper & Industries Limited's (NSE:ORIENTPPR) CEO Compensation And Here's Why

Key Insights

• Orient Paper & Industries to hold its Annual General Meeting on 2nd of August
• Salary of ₹6.50m is part of CEO Ashwin Laddha's total remuneration
• The total compensation is 408% higher than the average for the industry
• Orient Paper & Industries' EPS grew by 96% over the past three years while total shareholder return over the past three years was 78%

Under the guidance of CEO Ashwin Laddha, Orient Paper & Industries Limited (NSE:ORIENTPPR) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 2nd of August. However, some shareholders may still want to keep CEO compensation within reason.

View our latest analysis for Orient Paper & Industries

Comparing Orient Paper & Industries Limited's CEO Compensation With The Industry

According to our data, Orient Paper & Industries Limited has a market capitalization of ₹11b, and paid its CEO total annual compensation worth ₹31m over the year to March 2024. We note that's an increase of 53% above last year. While we always look at total compensation first, our analysis shows that the salary component is less, at ₹6.5m.

In comparison with other companies in the Indian Forestry industry with market capitalizations under ₹17b, the reported median total CEO compensation was ₹6.2m. Hence, we can conclude that Ashwin Laddha is remunerated higher than the industry median. Moreover, Ashwin Laddha also holds ₹6.1m worth of Orient Paper & Industries stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2024	2023	Proportion (2024)
Salary	₹6.5m	₹6.5m	21%
Other	₹25m	₹14m	79%
Total Compensation	₹31m	₹20m	100%

Talking in terms of the industry, salary represented approximately 89% of total compensation out of all the companies we analyzed, while other remuneration made up 11% of the pie. In Orient Paper & Industries' case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Orient Paper & Industries Limited's Growth

Orient Paper & Industries Limited's earnings per share (EPS) grew 96% per year over the last three years. In the last year, its revenue is down 12%.

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. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Orient Paper & Industries Limited Been A Good Investment?

Most shareholders would probably be pleased with Orient Paper & Industries Limited for providing a total return of 78% over three years. 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...

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.

CEO compensation can have a massive impact on performance, but it's just one element. We've identified 3 warning signs for Orient Paper & Industries that investors should be aware of in a dynamic business environment.

Important note: Orient Paper & Industries is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com