Here's Why Shareholders May Want To Be Cautious With Increasing Pokarna Limited's (NSE:POKARNA) CEO Pay Packet

Key Insights

• Pokarna's Annual General Meeting to take place on 10th of September
• Total pay for CEO Gautam Chand Jain includes ₹18.0m salary
• Total compensation is 302% above industry average
• Pokarna's total shareholder return over the past three years was 47% while its EPS grew by 21% over the past three years

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CEO Gautam Chand Jain has done a decent job of delivering relatively good performance at Pokarna Limited (NSE:POKARNA) recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 10th of September. However, some shareholders may still want to keep CEO compensation within reason.

View our latest analysis for Pokarna

Comparing Pokarna Limited's CEO Compensation With The Industry

According to our data, Pokarna Limited has a market capitalization of ₹25b, and paid its CEO total annual compensation worth ₹159m over the year to March 2025. That's a notable increase of 96% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at ₹18m.

On comparing similar companies from the Indian Basic Materials industry with market caps ranging from ₹8.8b to ₹35b, we found that the median CEO total compensation was ₹40m. Accordingly, our analysis reveals that Pokarna Limited pays Gautam Chand Jain north of the industry median. Moreover, Gautam Chand Jain also holds ₹13b worth of Pokarna stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Speaking on an industry level, nearly 91% of total compensation represents salary, while the remainder of 9% is other remuneration. It's interesting to note that Pokarna allocates a smaller portion of compensation to salary 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.

Pokarna Limited's Growth

Over the past three years, Pokarna Limited has seen its earnings per share (EPS) grow by 21% per year. It achieved revenue growth of 26% over the last year.

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. 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 Pokarna Limited Been A Good Investment?

Most shareholders would probably be pleased with Pokarna Limited for providing a total return of 47% 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...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Pokarna (free visualization of insider trades).

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.