West Coast Paper Mills Limited's (NSE:WSTCSTPAPR) CEO Might Not Expect Shareholders To Be So Generous This Year

Key Insights

• West Coast Paper Mills to hold its Annual General Meeting on 28th of August
• Total pay for CEO Shree Bangur includes ₹24.0m salary
• Total compensation is 1,410% above industry average
• West Coast Paper Mills' EPS declined by 18% over the past three years while total shareholder loss over the past three years was 13%

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The results at West Coast Paper Mills Limited (NSE:WSTCSTPAPR) have been quite disappointing recently and CEO Shree Bangur bears some responsibility for this. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 28th of August. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. The data we present below explains why we think CEO compensation is not consistent with recent performance.

View our latest analysis for West Coast Paper Mills

How Does Total Compensation For Shree Bangur Compare With Other Companies In The Industry?

At the time of writing, our data shows that West Coast Paper Mills Limited has a market capitalization of ₹33b, and reported total annual CEO compensation of ₹153m for the year to March 2025. We note that's a decrease of 39% compared to last year. While we always look at total compensation first, our analysis shows that the salary component is less, at ₹24m.

For comparison, other companies in the Indian Forestry industry with market capitalizations ranging between ₹17b and ₹70b had a median total CEO compensation of ₹10m. Accordingly, our analysis reveals that West Coast Paper Mills Limited pays Shree Bangur north of the industry median. Moreover, Shree Bangur also holds ₹1.4b worth of West Coast Paper Mills stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, around 91% of total compensation represents salary and 9% is other remuneration. It's interesting to note that West Coast Paper Mills 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 West Coast Paper Mills Limited's Growth Numbers

Over the last three years, West Coast Paper Mills Limited has shrunk its earnings per share by 18% per year. It saw its revenue drop 4.8% over the last year.

Few shareholders would be pleased to read that EPS have declined. This is compounded by the fact revenue is actually down on last year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 West Coast Paper Mills Limited Been A Good Investment?

Since shareholders would have lost about 13% over three years, some West Coast Paper Mills Limited investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

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, the board will get the chance to explain the steps it plans to take to improve business performance.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 3 warning signs for West Coast Paper Mills that investors should look into moving forward.

Important note: West Coast 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.