Arrow Greentech Limited's (NSE:ARROWGREEN) CEO Looks Due For A Compensation Raise

Key Insights

• Arrow Greentech to hold its Annual General Meeting on 16th of September
• Total pay for CEO Shilpan Patel includes ₹10.1m salary
• The overall pay is 69% below the industry average
• Over the past three years, Arrow Greentech's EPS grew by 72% and over the past three years, the total shareholder return was 552%

Shareholders will be pleased by the impressive results for Arrow Greentech Limited (NSE:ARROWGREEN) recently and CEO Shilpan Patel has played a key role. This would be kept in mind at the upcoming AGM on 16th of September which will be a chance for them to hear the board review the financial results, discuss future company strategy and vote on resolutions such as executive remuneration and other matters. We think the CEO has done a pretty decent job and probably deserves a well-earned pay rise.

See our latest analysis for Arrow Greentech

Comparing Arrow Greentech Limited's CEO Compensation With The Industry

Our data indicates that Arrow Greentech Limited has a market capitalization of ₹13b, and total annual CEO compensation was reported as ₹10m for the year to March 2024. That's a notable increase of 25% on last year. It is worth noting that the CEO compensation consists entirely of the salary, worth ₹10m.

For comparison, other companies in the Indian Packaging industry with market capitalizations ranging between ₹8.4b and ₹34b had a median total CEO compensation of ₹32m. This suggests that Shilpan Patel is paid below the industry median. Furthermore, Shilpan Patel directly owns ₹5.5b worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	₹10m	₹8.1m	100%
Other	-	-	-
Total Compensation	₹10m	₹8.1m	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. At the company level, Arrow Greentech pays Shilpan Patel solely through a salary, preferring to go down a conventional route. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Arrow Greentech Limited's Growth Numbers

Over the past three years, Arrow Greentech Limited has seen its earnings per share (EPS) grow by 72% per year. In the last year, its revenue is up 21%.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. 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 Arrow Greentech Limited Been A Good Investment?

Boasting a total shareholder return of 552% over three years, Arrow Greentech Limited has done well by shareholders. 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...

Arrow Greentech rewards its CEO solely through a salary, ignoring non-salary benefits completely. Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. That's why we did our research, and identified 2 warning signs for Arrow Greentech (of which 1 can't be ignored!) that you should know about in order to have a holistic understanding of the stock.

Switching gears from Arrow Greentech, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.