Shareholders Will Probably Hold Off On Increasing Shree Rama Multi-Tech Limited's (NSE:SHREERAMA) CEO Compensation For The Time Being

Key Insights

• Shree Rama Multi-Tech's Annual General Meeting to take place on 5th of September
• Salary of ₹2.40m is part of CEO Shailesh Desai's total remuneration
• The total compensation is 95% higher than the average for the industry
• Shree Rama Multi-Tech's EPS grew by 12% over the past three years while total shareholder return over the past three years was 192%

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 5th 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 will still be cautious of paying the CEO excessively.

View our latest analysis for Shree Rama Multi-Tech

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

Our data indicates that Shree Rama Multi-Tech Limited has a market capitalization of ₹4.0b, and total annual CEO compensation was reported as ₹7.0m for the year to March 2024. This was the same amount the CEO received in the prior year. While we always look at total compensation first, our analysis shows that the salary component is less, at ₹2.4m.

In comparison with other companies in the Indian Packaging industry with market capitalizations under ₹17b, the reported median total CEO compensation was ₹3.6m. Accordingly, our analysis reveals that Shree Rama Multi-Tech Limited pays Shailesh Desai north of the industry median.

Component	2024	2023	Proportion (2024)
Salary	₹2.4m	₹2.4m	34%
Other	₹4.6m	₹4.6m	66%
Total Compensation	₹7.0m	₹7.0m	100%

Talking in terms of the industry, salary represented approximately 97% of total compensation out of all the companies we analyzed, while other remuneration made up 3% of the pie. It's interesting to note that Shree Rama Multi-Tech 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 Rama Multi-Tech Limited's Growth Numbers

Over the past three years, Shree Rama Multi-Tech Limited has seen its earnings per share (EPS) grow by 12% per year. In the last year, its revenue is down 7.9%.

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. 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 Shree Rama Multi-Tech Limited Been A Good Investment?

We think that the total shareholder return of 192%, over three years, would leave most Shree Rama Multi-Tech Limited shareholders smiling. 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.

To Conclude...

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.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 1 warning sign for Shree Rama Multi-Tech that you should be aware of before investing.

Switching gears from Shree Rama Multi-Tech, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.