Stock Analysis

How Much Is Astral Poly Technik's (NSE:ASTRAL) CEO Getting Paid?

NSEI:ASTRAL
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Sandeep Engineer has been the CEO of Astral Poly Technik Limited (NSE:ASTRAL) since 2006, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

View our latest analysis for Astral Poly Technik

Comparing Astral Poly Technik Limited's CEO Compensation With the industry

Our data indicates that Astral Poly Technik Limited has a market capitalization of ₹302b, and total annual CEO compensation was reported as ₹60m for the year to March 2020. We note that's an increase of 19% above last year. We note that the salary portion, which stands at ₹34.6m constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the industry with market capitalizations ranging from ₹146b to ₹466b, the reported median CEO total compensation was ₹197m. That is to say, Sandeep Engineer is paid under the industry median. Furthermore, Sandeep Engineer directly owns ₹95b worth of shares in the company, implying that they are deeply invested in the company's success.

Component20202019Proportion (2020)
Salary ₹35m ₹29m 58%
Other ₹25m ₹22m 42%
Total Compensation₹60m ₹51m100%

On an industry level, it's fascinating to see that all of total compensation represents salary and non-salary benefits do not factor into the equation at all. Astral Poly Technik pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

ceo-compensation
NSEI:ASTRAL CEO Compensation February 7th 2021

Astral Poly Technik Limited's Growth

Astral Poly Technik Limited has seen its earnings per share (EPS) increase by 19% a year over the past three years. Its revenue is down 1.6% over the previous year.

This demonstrates that the company has been improving recently and is good news for the shareholders. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Astral Poly Technik Limited Been A Good Investment?

Boasting a total shareholder return of 216% over three years, Astral Poly Technik Limited has done well by shareholders. 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.

To Conclude...

As previously discussed, Sandeep is compensated less than what is normal for CEOs of companies of similar size, and which belong to the same industry. When taking into account the company's strong EPS growth over the past three years, it appears CEO compensation is modest. Plus, we can't ignore the impressive shareholder returns, and won't be surprised if some shareholders were to reward such excellent all-around performance with a raise.

CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 2 warning signs for Astral Poly Technik that investors should look into moving forward.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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This article by Simply Wall St is general in nature. 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.
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