Pearl Global Industries Limited's (NSE:PGIL) CEO Compensation Is Looking A Bit Stretched At The Moment

Key Insights

• Pearl Global Industries to hold its Annual General Meeting on 24th of July
• Total pay for CEO Pallab Banerjee includes ₹6.50m salary
• The total compensation is 211% higher than the average for the industry
• Pearl Global Industries' EPS grew by 51% over the past three years while total shareholder return over the past three years was 770%

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Under the guidance of CEO Pallab Banerjee, Pearl Global Industries Limited (NSE:PGIL) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 24th of July. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

View our latest analysis for Pearl Global Industries

Comparing Pearl Global Industries Limited's CEO Compensation With The Industry

According to our data, Pearl Global Industries Limited has a market capitalization of ₹75b, and paid its CEO total annual compensation worth ₹129m over the year to March 2025. Notably, that's an increase of 41% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at ₹6.5m.

On comparing similar companies from the Indian Luxury industry with market caps ranging from ₹34b to ₹138b, we found that the median CEO total compensation was ₹41m. This suggests that Pallab Banerjee is paid more than the median for the industry. Furthermore, Pallab Banerjee directly owns ₹363m worth of shares in the company, implying that they are deeply invested in the company's success.

Speaking on an industry level, nearly 98% of total compensation represents salary, while the remainder of 2% is other remuneration. Pearl Global 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.

Pearl Global Industries Limited's Growth

Pearl Global Industries Limited has seen its earnings per share (EPS) increase by 51% a year over the past three years. Its revenue is up 31% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Pearl Global Industries Limited Been A Good Investment?

Most shareholders would probably be pleased with Pearl Global Industries Limited for providing a total return of 770% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 1 warning sign for Pearl Global Industries that investors should be aware of in a dynamic business environment.

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.

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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.