Shareholders May Be Wary Of Increasing Satia Industries Limited's (NSE:SATIA) CEO Compensation Package

Key Insights

• Satia Industries to hold its Annual General Meeting on 30th of September
• CEO Ajay Satia's total compensation includes salary of ₹53.0m
• The overall pay is 837% above the industry average
• Satia Industries' three-year loss to shareholders was 36% while its EPS was down 3.1% over the past three years

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Shareholders will probably not be too impressed with the underwhelming results at Satia Industries Limited (NSE:SATIA) recently. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 30th of September. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. From our analysis, we think CEO compensation may need a review in light of the recent performance.

View our latest analysis for Satia Industries

Comparing Satia Industries Limited's CEO Compensation With The Industry

According to our data, Satia Industries Limited has a market capitalization of ₹8.2b, and paid its CEO total annual compensation worth ₹55m over the year to March 2025. Notably, that's a decrease of 43% over the year before. We note that the salary portion, which stands at ₹53.0m constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the Indian Forestry industry with market capitalizations below ₹18b, reported a median total CEO compensation of ₹5.9m. Hence, we can conclude that Ajay Satia is remunerated higher than the industry median. What's more, Ajay Satia holds ₹3.1b worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, around 92% of total compensation represents salary and 8% is other remuneration. Satia Industries pays a high salary, concentrating more on this aspect of compensation in comparison to non-salary pay. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Satia Industries Limited's Growth Numbers

Satia Industries Limited has reduced its earnings per share by 3.1% a year over the last three years. It saw its revenue drop 9.5% over the last year.

Overall this is not a very positive result for shareholders. And the fact that revenue is down year on year arguably paints an ugly picture. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. 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 Satia Industries Limited Been A Good Investment?

Few Satia Industries Limited shareholders would feel satisfied with the return of -36% over three years. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

Satia Industries pays its CEO a majority of compensation through a salary. Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 3 warning signs for Satia Industries that you should be aware of before investing.

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.