Here's Why Shareholders Will Not Be Complaining About Seshasayee Paper and Boards Limited's (NSE:SESHAPAPER) CEO Pay Packet

Key Insights

• Seshasayee Paper and Boards to hold its Annual General Meeting on 1st of June
• Total pay for CEO Kallidaikurichi Kasi Viswanathan includes ₹28.1m salary
• The total compensation is similar to the average for the industry
• Seshasayee Paper and Boards' EPS grew by 37% over the past three years while total shareholder return over the past three years was 101%

The performance at Seshasayee Paper and Boards Limited (NSE:SESHAPAPER) has been quite strong recently and CEO Kallidaikurichi Kasi Viswanathan has played a role in it. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 1st of June. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. In light of the great performance, we discuss the case why we think CEO compensation is not excessive.

Check out our latest analysis for Seshasayee Paper and Boards

How Does Total Compensation For Kallidaikurichi Kasi Viswanathan Compare With Other Companies In The Industry?

Our data indicates that Seshasayee Paper and Boards Limited has a market capitalization of ₹20b, and total annual CEO compensation was reported as ₹31m for the year to March 2024. We note that's an increase of 28% above last year. We note that the salary portion, which stands at ₹28.1m constitutes the majority of total compensation received by the CEO.

On comparing similar companies from the Indian Forestry industry with market caps ranging from ₹8.3b to ₹33b, we found that the median CEO total compensation was ₹38m. So it looks like Seshasayee Paper and Boards compensates Kallidaikurichi Kasi Viswanathan in line with the median for the industry.

Component	2024	2023	Proportion (2024)
Salary	₹28m	₹22m	91%
Other	₹2.9m	₹2.5m	9%
Total Compensation	₹31m	₹24m	100%

On an industry level, roughly 87% of total compensation represents salary and 13% is other remuneration. Although there is a difference in how total compensation is set, Seshasayee Paper and Boards more or less reflects the market in terms of setting the salary. 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.

A Look at Seshasayee Paper and Boards Limited's Growth Numbers

Seshasayee Paper and Boards Limited's earnings per share (EPS) grew 37% per year over the last three years. It saw its revenue drop 13% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Seshasayee Paper and Boards Limited Been A Good Investment?

Boasting a total shareholder return of 101% over three years, Seshasayee Paper and Boards Limited has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 1 warning sign for Seshasayee Paper and Boards 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.

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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.