We Discuss Why Star Paper Mills Limited's (NSE:STARPAPER) CEO Compensation May Be Closely Reviewed
Key Insights
- Star Paper Mills' Annual General Meeting to take place on 25th of September
- Total pay for CEO Madhukar Mishra includes ₹42.3m salary
- The total compensation is 701% higher than the average for the industry
- Star Paper Mills' three-year loss to shareholders was 5.4% while its EPS was down 5.3% over the past three years
Star Paper Mills Limited (NSE:STARPAPER) has not performed well recently and CEO Madhukar Mishra will probably need to up their game. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 25th of September. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. The data we present below explains why we think CEO compensation is not consistent with recent performance.
See our latest analysis for Star Paper Mills
How Does Total Compensation For Madhukar Mishra Compare With Other Companies In The Industry?
At the time of writing, our data shows that Star Paper Mills Limited has a market capitalization of ₹2.7b, and reported total annual CEO compensation of ₹48m for the year to March 2025. That's a modest increase of 3.7% on the prior year. We note that the salary portion, which stands at ₹42.3m 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 ₹6.0m. Accordingly, our analysis reveals that Star Paper Mills Limited pays Madhukar Mishra north of the industry median.
| Component | 2025 | 2024 | Proportion (2025) |
| Salary | ₹42m | ₹41m | 89% |
| Other | ₹5.4m | ₹5.0m | 11% |
| Total Compensation | ₹48m | ₹46m | 100% |
On an industry level, roughly 92% of total compensation represents salary and 8% is other remuneration. Star Paper Mills is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
Star Paper Mills Limited's Growth
Star Paper Mills Limited has reduced its earnings per share by 5.3% a year over the last three years. It saw its revenue drop 2.6% over the last year.
The decline in EPS is a bit concerning. This is compounded by the fact revenue is actually down on last year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. 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 Star Paper Mills Limited Been A Good Investment?
Since shareholders would have lost about 5.4% over three years, some Star Paper Mills Limited investors would surely be feeling negative emotions. So shareholders would probably want the company to be less generous with CEO compensation.
To Conclude...
Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.
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. We've identified 1 warning sign for Star Paper Mills that investors should be aware of in a dynamic business environment.
Important note: Star Paper Mills 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.