We Discuss Why The CEO Of Pricol Limited (NSE:PRICOLLTD) Is Due For A Pay Rise

Key Insights

• Pricol to hold its Annual General Meeting on 7th of August
• CEO Panchapagesa Ganesh's total compensation includes salary of ₹13.0m
• Total compensation is 60% below industry average
• Over the past three years, Pricol's EPS grew by 100% and over the past three years, the total shareholder return was 422%

The impressive results at Pricol Limited (NSE:PRICOLLTD) recently will be great news for shareholders. At the upcoming AGM on 7th of August, they would be interested to hear about the company strategy going forward and get a chance to cast their votes on resolutions such as executive remuneration and other company matters. We think the CEO has done a pretty decent job and probably deserves a well-earned pay rise.

Check out our latest analysis for Pricol

Comparing Pricol Limited's CEO Compensation With The Industry

According to our data, Pricol Limited has a market capitalization of ₹61b, and paid its CEO total annual compensation worth ₹13m over the year to March 2024. That's a notable increase of 32% on last year. It is worth noting that the CEO compensation consists entirely of the salary, worth ₹13m.

In comparison with other companies in the Indian Auto Components industry with market capitalizations ranging from ₹33b to ₹134b, the reported median CEO total compensation was ₹33m. Accordingly, Pricol pays its CEO under the industry median.

Component	2024	2023	Proportion (2024)
Salary	₹13m	₹9.8m	100%
Other	-	-	-
Total Compensation	₹13m	₹9.8m	100%

Speaking on an industry level, nearly 74% of total compensation represents salary, while the remainder of 26% is other remuneration. At the company level, Pricol pays Panchapagesa Ganesh solely through a salary, preferring to go down a conventional route. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

Pricol Limited's Growth

Pricol Limited has seen its earnings per share (EPS) increase by 100% a year over the past three years. Its revenue is up 16% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Pricol Limited Been A Good Investment?

Most shareholders would probably be pleased with Pricol Limited for providing a total return of 422% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

Pricol pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

Whatever your view on compensation, you might want to check if insiders are buying or selling Pricol shares (free trial).

Important note: Pricol 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com