Increases to Shree Rama Multi-Tech Limited's (NSE:SHREERAMA) CEO Compensation Might Cool off for now

Key Insights

• Shree Rama Multi-Tech to hold its Annual General Meeting on 6th of September
• Total pay for CEO Shailesh Desai includes ₹2.40m salary
• Total compensation is 46% above industry average
• Shree Rama Multi-Tech's EPS grew by 92% over the past three years while total shareholder return over the past three years was 247%

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CEO Shailesh Desai has done a decent job of delivering relatively good performance at Shree Rama Multi-Tech Limited (NSE:SHREERAMA) recently. As shareholders go into the upcoming AGM on 6th of September, 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 be hesitant of being overly generous with CEO compensation.

View our latest analysis for Shree Rama Multi-Tech

Comparing Shree Rama Multi-Tech Limited's CEO Compensation With The Industry

According to our data, Shree Rama Multi-Tech Limited has a market capitalization of ₹7.2b, and paid its CEO total annual compensation worth ₹7.0m over the year to March 2025. There was no change in the compensation compared to last year. While we always look at total compensation first, our analysis shows that the salary component is less, at ₹2.4m.

On comparing similar-sized companies in the Indian Packaging industry with market capitalizations below ₹18b, we found that the median total CEO compensation was ₹4.8m. This suggests that Shailesh Desai is paid more than the median for the industry.

Talking in terms of the industry, salary represents all of total compensation among the companies we analyzed, while other remuneration is, interestingly, completely ignored. Shree Rama Multi-Tech sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Shree Rama Multi-Tech Limited's Growth

Over the past three years, Shree Rama Multi-Tech Limited has seen its earnings per share (EPS) grow by 92% per year. Its revenue is up 25% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. 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 Shree Rama Multi-Tech Limited Been A Good Investment?

Most shareholders would probably be pleased with Shree Rama Multi-Tech Limited for providing a total return of 247% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

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. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is 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 Shree Rama Multi-Tech that you should be aware of before investing.

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.