Most Shareholders Will Probably Find That The Compensation For Shree Cement Limited's (NSE:SHREECEM) CEO Is Reasonable

Key Insights

• Shree Cement will host its Annual General Meeting on 4th of August
• Salary of ₹75.7m is part of CEO Neeraj Akhoury's total remuneration
• The total compensation is 39% less than the average for the industry
• Over the past three years, Shree Cement's EPS fell by 22% and over the past three years, the total shareholder return was 48%

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Shareholders may be wondering what CEO Neeraj Akhoury plans to do to improve the less than great performance at Shree Cement Limited (NSE:SHREECEM) recently. They will get a chance to exercise their voting power to influence the future direction of the company in the next AGM on 4th of August. Setting appropriate executive remuneration to align with the interests of shareholders may also be a way to influence the company performance in the long run. We have prepared some analysis below to show that CEO compensation looks to be reasonable.

See our latest analysis for Shree Cement

Comparing Shree Cement Limited's CEO Compensation With The Industry

Our data indicates that Shree Cement Limited has a market capitalization of ₹1.1t, and total annual CEO compensation was reported as ₹216m for the year to March 2025. Notably, that's an increase of 10.0% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at ₹76m.

In comparison with other companies in the Indian Basic Materials industry with market capitalizations over ₹693b, the reported median total CEO compensation was ₹355m. This suggests that Neeraj Akhoury is paid below the industry median.

On an industry level, roughly 87% of total compensation represents salary and 13% is other remuneration. It's interesting to note that Shree Cement allocates a smaller portion of compensation to salary in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at Shree Cement Limited's Growth Numbers

Over the last three years, Shree Cement Limited has shrunk its earnings per share by 22% per year. In the last year, its revenue is down 5.5%.

The decline in EPS is a bit concerning. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Shree Cement Limited Been A Good Investment?

We think that the total shareholder return of 48%, over three years, would leave most Shree Cement Limited shareholders smiling. 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.

In Summary...

Although shareholders would be quite happy with the returns they have earned on their initial investment, earnings have failed to grow and this could mean these strong returns may not continue. These concerns could be addressed to the board and shareholders should revisit their investment thesis to see if it still makes sense.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 2 warning signs for Shree Cement that investors should be aware of in a dynamic business environment.

Important note: Shree Cement is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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.