Shareholders May Not Be So Generous With Ruchira Papers Limited's (NSE:RUCHIRA) CEO Compensation And Here's Why

Key Insights

• Ruchira Papers will host its Annual General Meeting on 29th of September
• Salary of ₹27.4m is part of CEO Umesh Garg's total remuneration
• The total compensation is 365% higher than the average for the industry
• Ruchira Papers' EPS grew by 18% over the past three years while total shareholder return over the past three years was 56%

We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

Performance at Ruchira Papers Limited (NSE:RUCHIRA) has been reasonably good and CEO Umesh Garg has done a decent job of steering the company in the right direction. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 29th of September. However, some shareholders will still be cautious of paying the CEO excessively.

View our latest analysis for Ruchira Papers

How Does Total Compensation For Umesh Garg Compare With Other Companies In The Industry?

At the time of writing, our data shows that Ruchira Papers Limited has a market capitalization of ₹5.1b, and reported total annual CEO compensation of ₹27m for the year to March 2025. This means that the compensation hasn't changed much from last year. It is worth noting that the CEO compensation consists entirely of the salary, worth ₹27m.

In comparison with other companies in the Indian Forestry industry with market capitalizations under ₹18b, the reported median total CEO compensation was ₹5.9m. Accordingly, our analysis reveals that Ruchira Papers Limited pays Umesh Garg north of the industry median. Moreover, Umesh Garg also holds ₹491m worth of Ruchira Papers 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 92% of total compensation represents salary, while the remainder of 8% is other remuneration. At the company level, Ruchira Papers pays Umesh Garg solely through a salary, preferring to go down a conventional route. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

Ruchira Papers Limited's Growth

Over the past three years, Ruchira Papers Limited has seen its earnings per share (EPS) grow by 18% per year. It achieved revenue growth of 1.7% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Ruchira Papers Limited Been A Good Investment?

Most shareholders would probably be pleased with Ruchira Papers Limited for providing a total return of 56% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

Ruchira Papers pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. 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. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

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 Ruchira Papers that investors should think about before committing capital to this stock.

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.

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.