Increases to CEO Compensation Might Be Put On Hold For Now at Shreyans Industries Limited (NSE:SHREYANIND)

Key Insights

• Shreyans Industries to hold its Annual General Meeting on 12th of August
• Salary of ₹49.8m is part of CEO Rajneesh Oswal's total remuneration
• The total compensation is 822% higher than the average for the industry
• Over the past three years, Shreyans Industries' EPS grew by 72% and over the past three years, the total shareholder return was 122%

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Under the guidance of CEO Rajneesh Oswal, Shreyans Industries Limited (NSE:SHREYANIND) has performed reasonably well recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 12th of August. However, some shareholders will still be cautious of paying the CEO excessively.

See our latest analysis for Shreyans Industries

Comparing Shreyans Industries Limited's CEO Compensation With The Industry

Our data indicates that Shreyans Industries Limited has a market capitalization of ₹3.2b, and total annual CEO compensation was reported as ₹69m for the year to March 2025. We note that's a small decrease of 6.2% on last year. We note that the salary portion, which stands at ₹49.8m constitutes the majority of total compensation received by the CEO.

On comparing similar-sized companies in the Indian Forestry industry with market capitalizations below ₹18b, we found that the median total CEO compensation was ₹7.5m. This suggests that Rajneesh Oswal is paid more than the median for the industry. What's more, Rajneesh Oswal holds ₹26m 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, roughly 90% of total compensation represents salary and 10% is other remuneration. In Shreyans Industries' case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Shreyans Industries Limited's Growth

Over the past three years, Shreyans Industries Limited has seen its earnings per share (EPS) grow by 72% per year. In the last year, its revenue is down 12%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Shreyans Industries Limited Been A Good Investment?

We think that the total shareholder return of 122%, over three years, would leave most Shreyans Industries 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.

In Summary...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed 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.

CEO compensation can have a massive impact on performance, but it's just one element. We've identified 4 warning signs for Shreyans Industries that investors should be aware of in a dynamic business environment.

Important note: Shreyans Industries 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.