Rama Phosphates Limited's (NSE:RAMAPHO) CEO Compensation Is Looking A Bit Stretched At The Moment

Key Insights

• Rama Phosphates to hold its Annual General Meeting on 13th of August
• Total pay for CEO Haresh Ramsinghani includes ₹16.6m salary
• The total compensation is 225% higher than the average for the industry
• Rama Phosphates' total shareholder return over the past three years was 11% while its EPS was down 25% over the past three years

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Performance at Rama Phosphates Limited (NSE:RAMAPHO) has been reasonably good and CEO Haresh Ramsinghani has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 13th 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 may still want to keep CEO compensation within reason.

See our latest analysis for Rama Phosphates

Comparing Rama Phosphates Limited's CEO Compensation With The Industry

According to our data, Rama Phosphates Limited has a market capitalization of ₹5.3b, and paid its CEO total annual compensation worth ₹20m over the year to March 2025. Notably, that's an increase of 27% over the year before. We note that the salary portion, which stands at ₹16.6m constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the Indian Chemicals industry with market capitalizations below ₹18b, reported a median total CEO compensation of ₹6.0m. This suggests that Haresh Ramsinghani is paid more than the median for the industry.

On an industry level, around 85% of total compensation represents salary and 15% is other remuneration. Although there is a difference in how total compensation is set, Rama Phosphates more or less reflects the market in terms of setting the salary. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Rama Phosphates Limited's Growth

Rama Phosphates Limited has reduced its earnings per share by 25% a year over the last three years. It achieved revenue growth of 24% over the last year.

Investors would be a bit wary of companies that have lower EPS On the other hand, the strong revenue growth suggests the business is growing. It's hard to reach a conclusion about business performance right now. This may be one to watch. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Rama Phosphates Limited Been A Good Investment?

Rama Phosphates Limited has served shareholders reasonably well, with a total return of 11% over three years. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary...

Although the company has performed relatively well, we still think there are some areas that could be improved. EPS growth is still weak, and until that picks up, shareholders may find it hard to approve a pay rise for the CEO, since they are already paid above the average in their industry.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We identified 2 warning signs for Rama Phosphates (1 is a bit unpleasant!) that you should be aware of before investing here.

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.