CCL Products (India) Limited's (NSE:CCL) CEO Compensation Is Looking A Bit Stretched At The Moment

Under the guidance of CEO Challa Srishant, CCL Products (India) Limited (NSE:CCL) has performed reasonably well recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 26 August 2021. However, some shareholders will still be cautious of paying the CEO excessively.

View our latest analysis for CCL Products (India)

How Does Total Compensation For Challa Srishant Compare With Other Companies In The Industry?

Our data indicates that CCL Products (India) Limited has a market capitalization of ₹52b, and total annual CEO compensation was reported as ₹59m for the year to March 2021. Notably, that's a decrease of 11% over the year before. In particular, the salary of ₹36.0m, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar companies from the same industry with market caps ranging from ₹30b to ₹119b, we found that the median CEO total compensation was ₹32m. Accordingly, our analysis reveals that CCL Products (India) Limited pays Challa Srishant north of the industry median. Furthermore, Challa Srishant directly owns ₹5.5b worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2021	2020	Proportion (2021)
Salary	₹36m	₹36m	61%
Other	₹23m	₹31m	39%
Total Compensation	₹59m	₹67m	100%

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. CCL Products (India) 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.

A Look at CCL Products (India) Limited's Growth Numbers

Over the past three years, CCL Products (India) Limited has seen its earnings per share (EPS) grow by 5.3% per year. It achieved revenue growth of 11% over the last year.

This revenue growth could really point to a brighter future. And, while modest, the EPS growth is noticeable. So while performance isn't amazing, we think it really does seem quite respectable. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has CCL Products (India) Limited Been A Good Investment?

We think that the total shareholder return of 56%, over three years, would leave most CCL Products (India) Limited shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same 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. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

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. We did our research and spotted 2 warning signs for CCL Products (India) 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. 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.
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