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Shareholders Will Probably Hold Off On Increasing Asian Paints Limited's (NSE:ASIANPAINT) CEO Compensation For The Time Being

Simply Wall St · 06/20 00:24

Key Insights

  • Asian Paints' Annual General Meeting to take place on 26th of June
  • Salary of ₹54.6m is part of CEO Amit Syngle's total remuneration
  • The total compensation is 33% higher than the average for the industry
  • Over the past three years, Asian Paints' EPS grew by 6.6% and over the past three years, the total loss to shareholders 15%

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Shareholders of Asian Paints Limited (NSE:ASIANPAINT) will have been dismayed by the negative share price return over the last three years. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 26th of June. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.

View our latest analysis for Asian Paints

Comparing Asian Paints Limited's CEO Compensation With The Industry

According to our data, Asian Paints Limited has a market capitalization of ₹2.2t, and paid its CEO total annual compensation worth ₹112m over the year to March 2025. That's a notable decrease of 41% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at ₹55m.

On comparing similar companies in the Indian Chemicals industry with market capitalizations above ₹694b, we found that the median total CEO compensation was ₹84m. This suggests that Amit Syngle is paid more than the median for the industry.

Component 2025 2024 Proportion (2025)
Salary ₹55m ₹48m 49%
Other ₹57m ₹140m 51%
Total Compensation ₹112m ₹188m 100%

On an industry level, around 89% of total compensation represents salary and 11% is other remuneration. It's interesting to note that Asian Paints 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.

ceo-compensation
NSEI:ASIANPAINT CEO Compensation June 20th 2025

Asian Paints Limited's Growth

Over the past three years, Asian Paints Limited has seen its earnings per share (EPS) grow by 6.6% per year. In the last year, its revenue is down 4.5%.

We would prefer it if there was revenue growth, but it is good to see a modest EPS growth at least. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Asian Paints Limited Been A Good Investment?

With a three year total loss of 15% for the shareholders, Asian Paints Limited would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. The upcoming AGM will be a chance for shareholders to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.

CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 1 warning sign for Asian Paints that investors should look into moving forward.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.