A Look At Premier Polyfilm's (NSE:PREMIERPOL) CEO Remuneration

Amar Goenka is the CEO of Premier Polyfilm Ltd. (NSE:PREMIERPOL), and in this article, we analyze the executive's compensation package with respect to the overall performance of the company. This analysis will also assess whether Premier Polyfilm pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

See our latest analysis for Premier Polyfilm

Comparing Premier Polyfilm Ltd.'s CEO Compensation With the industry

According to our data, Premier Polyfilm Ltd. has a market capitalization of ₹691m, and paid its CEO total annual compensation worth ₹4.1m over the year to March 2020. That's a fairly small increase of 5.9% over the previous year. In particular, the salary of ₹2.40m, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar-sized companies in the industry with market capitalizations below ₹15b, we found that the median total CEO compensation was ₹4.7m. This suggests that Premier Polyfilm remunerates its CEO largely in line with the industry average. Moreover, Amar Goenka also holds ₹70m worth of Premier Polyfilm stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, roughly 81% of total compensation represents salary and 19% is other remuneration. Premier Polyfilm 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.

Premier Polyfilm Ltd.'s Growth

Premier Polyfilm Ltd.'s earnings per share (EPS) grew 17% per year over the last three years. It saw its revenue drop 15% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. 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 Premier Polyfilm Ltd. Been A Good Investment?

Given the total shareholder loss of 15% over three years, many shareholders in Premier Polyfilm Ltd. are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

As we touched on above, Premier Polyfilm Ltd. is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. On the other hand, the company has logged negative shareholder returns over the previous three years. But EPS growth is moving in a favorable direction, certainly a positive sign. It's tough for us to say CEO compensation is too generous when EPS growth is positive, but negative investor returns will irk shareholders and reduce any chances of a raise.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. In our study, we found 3 warning signs for Premier Polyfilm you should be aware of, and 1 of them is a bit unpleasant.

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. 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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