Prataap Snacks Limited's (NSE:DIAMONDYD) CEO Will Probably Struggle To See A Pay Rise This Year

The underwhelming performance at Prataap Snacks Limited (NSE:DIAMONDYD) recently has probably not pleased shareholders. The next AGM coming up on 05 August 2021 will be a chance for shareholders to have their concerns addressed by the board, challenge management on company strategy and vote on resolutions such as executive remuneration, which may help change the company's future prospects. We think most shareholders will probably pass the CEO compensation, based on what we gathered.

View our latest analysis for Prataap Snacks

How Does Total Compensation For Amit Kumat Compare With Other Companies In The Industry?

Our data indicates that Prataap Snacks Limited has a market capitalization of ₹17b, and total annual CEO compensation was reported as ₹6.8m for the year to March 2021. Notably, that's a decrease of 10.0% over the year before. Notably, the salary of ₹6.8m is the entirety of the CEO compensation.

On examining similar-sized companies in the industry with market capitalizations between ₹7.5b and ₹30b, we discovered that the median CEO total compensation of that group was ₹14m. In other words, Prataap Snacks pays its CEO lower than the industry median. Furthermore, Amit Kumat directly owns ₹831m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2021	2020	Proportion (2021)
Salary	₹6.8m	₹7.5m	100%
Other	-	-	-
Total Compensation	₹6.8m	₹7.5m	100%

Talking in terms of the industry, salary represents all of total compensation among the companies we analyzed, while other remuneration is, interestingly, completely ignored. On a company level, Prataap Snacks prefers to reward its CEO through a salary, opting not to pay Amit Kumat through non-salary benefits. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Prataap Snacks Limited's Growth

Over the last three years, Prataap Snacks Limited has shrunk its earnings per share by 34% per year. It saw its revenue drop 16% over the last year.

Few shareholders would be pleased to read that EPS have declined. And the fact that revenue is down year on year arguably paints an ugly picture. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Prataap Snacks Limited Been A Good Investment?

The return of -35% over three years would not have pleased Prataap Snacks Limited shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

Prataap Snacks rewards its CEO solely through a salary, ignoring non-salary benefits completely. Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.

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 2 warning signs for Prataap Snacks that you should be aware of before investing.

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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