What Did Premier Polyfilm's (NSE:PREMIERPOL) CEO Take Home Last Year?

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 look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Premier Polyfilm.

View our latest analysis for Premier Polyfilm

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

At the time of writing, our data shows that Premier Polyfilm Ltd. has a market capitalization of ₹791m, and reported total annual CEO compensation of ₹4.1m for 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 ₹4.1m. So it looks like Premier Polyfilm compensates Amar Goenka in line with the median for the industry. Furthermore, Amar Goenka directly owns ₹81m worth of shares in the company, implying that they are deeply invested in the company's success.

Talking in terms of the industry, salary represented approximately 97% of total compensation out of all the companies we analyzed, while other remuneration made up 3.2% of the pie. It's interesting to note that Premier Polyfilm allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Premier Polyfilm Ltd.'s Growth Numbers

Premier Polyfilm Ltd.'s earnings per share (EPS) grew 6.9% per year over the last three years. Its revenue is down 10.0% over the previous year.

We would argue that the lack of revenue growth in the last year is less than ideal, but the modest improvement in EPS is good. It's hard to reach a conclusion about business performance right now. This may be one to watch. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Premier Polyfilm Ltd. Been A Good Investment?

Given the total shareholder loss of 14% over three years, many shareholders in Premier Polyfilm Ltd. are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

As previously discussed, Amar is compensated close to the median for companies of its size, and which belong to the same industry. Meanwhile, Premier Polyfilm is suffering from adverse shareholder returns and althoughEPS have grown over the past three years, they have not been extraordinary. Although we wouldn't say CEO compensation is exceptionally high, it isn't very low either. Shareholders might want to see substantial improvements in returns before agreeing that Amar deserves a raise.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 3 warning signs for Premier Polyfilm that you should be aware of before investing.

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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