Paradeep Phosphates Limited's (NSE:PARADEEP) CEO Will Probably Have Their Compensation Approved By Shareholders

Key Insights

• Paradeep Phosphates will host its Annual General Meeting on 12th of September
• Total pay for CEO Narayanan Krishnan includes ₹49.2m salary
• The overall pay is comparable to the industry average
• Paradeep Phosphates' total shareholder return over the past three years was 229% while its EPS grew by 18% over the past three years

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We have been pretty impressed with the performance at Paradeep Phosphates Limited (NSE:PARADEEP) recently and CEO Narayanan Krishnan deserves a mention for their role in it. Shareholders will have this at the front of their minds in the upcoming AGM on 12th of September. 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 Paradeep Phosphates

Comparing Paradeep Phosphates Limited's CEO Compensation With The Industry

At the time of writing, our data shows that Paradeep Phosphates Limited has a market capitalization of ₹164b, and reported total annual CEO compensation of ₹73m for the year to March 2025. Notably, that's an increase of 61% over the year before. We note that the salary portion, which stands at ₹49.2m constitutes the majority of total compensation received by the CEO.

On comparing similar companies from the Indian Chemicals industry with market caps ranging from ₹88b to ₹282b, we found that the median CEO total compensation was ₹59m. This suggests that Paradeep Phosphates remunerates its CEO largely in line with the industry average.

On an industry level, around 84% of total compensation represents salary and 16% is other remuneration. It's interesting to note that Paradeep Phosphates 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.

Paradeep Phosphates Limited's Growth

Paradeep Phosphates Limited's earnings per share (EPS) grew 18% per year over the last three years. In the last year, its revenue is up 39%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Paradeep Phosphates Limited Been A Good Investment?

Most shareholders would probably be pleased with Paradeep Phosphates Limited for providing a total return of 229% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

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. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 2 warning signs for Paradeep Phosphates that you should be aware of before investing.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.