A Quick Analysis On Page Industries' (NSE:PAGEIND) CEO Salary

Vedji Ticku became the CEO of Page Industries Limited (NSE:PAGEIND) in 2016, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also assess whether Page Industries pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

Check out our latest analysis for Page Industries

How Does Total Compensation For Vedji Ticku Compare With Other Companies In The Industry?

At the time of writing, our data shows that Page Industries Limited has a market capitalization of ₹327b, and reported total annual CEO compensation of ₹54m for the year to March 2020. That's just a smallish increase of 6.9% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at ₹12m.

On comparing similar companies from the same industry with market caps ranging from ₹146b to ₹467b, we found that the median CEO total compensation was ₹54m. So it looks like Page Industries compensates Vedji Ticku in line with the median for the industry. Furthermore, Vedji Ticku directly owns ₹1.4m worth of shares in the company, implying that they are deeply invested in the company's success.

Speaking on an industry level, all of total compensation represents salary, while non-salary remuneration is completely ignored. Page Industries sets aside a smaller share of compensation for salary, in comparison to the overall 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 Page Industries Limited's Growth Numbers

Over the last three years, Page Industries Limited has shrunk its earnings per share by 14% per year. It saw its revenue drop 20% over the last year.

Overall this is not a very positive result for shareholders. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Page Industries Limited Been A Good Investment?

Boasting a total shareholder return of 39% over three years, Page Industries 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.

In Summary...

As we noted earlier, Page Industries pays its CEO in line with similar-sized companies belonging to the same industry. This isn't great when you look at it against the backdrop of EPS growth, which has been negative for the past three years. But on the bright side, shareholder returns have moved northward during the same period. We do not think CEO compensation is a problem, but shrinking EPS is undoubtedly an issue that will have to be addressed.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 3 warning signs for Page Industries that investors should think about before committing capital to this stock.

Important note: Page Industries 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. 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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