This Is Why Century Plyboards (India) Limited's (NSE:CENTURYPLY) CEO Compensation Looks Appropriate

Key Insights

• Century Plyboards (India) to hold its Annual General Meeting on 25th of September
• Salary of ₹20.0m is part of CEO Sanjay Agarwal's total remuneration
• Total compensation is similar to the industry average
• Century Plyboards (India)'s total shareholder return over the past three years was 106% while its EPS grew by 5.4% over the past three years

Performance at Century Plyboards (India) Limited (NSE:CENTURYPLY) has been reasonably good and CEO Sanjay Agarwal has done a decent job of steering the company in the right direction. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 25th of September. Here is our take on why we think the CEO compensation looks appropriate.

Check out our latest analysis for Century Plyboards (India)

How Does Total Compensation For Sanjay Agarwal Compare With Other Companies In The Industry?

Our data indicates that Century Plyboards (India) Limited has a market capitalization of ₹196b, and total annual CEO compensation was reported as ₹39m for the year to March 2024. Notably, that's a decrease of 8.7% over the year before. We note that the salary of ₹20.0m makes up a sizeable portion of the total compensation received by the CEO.

On examining similar-sized companies in the Indian Forestry industry with market capitalizations between ₹84b and ₹268b, we discovered that the median CEO total compensation of that group was ₹39m. This suggests that Century Plyboards (India) remunerates its CEO largely in line with the industry average. Moreover, Sanjay Agarwal also holds ₹22b worth of Century Plyboards (India) stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2024	2023	Proportion (2024)
Salary	₹20m	₹20m	51%
Other	₹19m	₹23m	49%
Total Compensation	₹39m	₹43m	100%

Talking in terms of the industry, salary represented approximately 90% of total compensation out of all the companies we analyzed, while other remuneration made up 10% of the pie. Century Plyboards (India) pays a modest slice of remuneration through salary, as compared to the broader industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

Century Plyboards (India) Limited's Growth

Century Plyboards (India) Limited has seen its earnings per share (EPS) increase by 5.4% a year over the past three years. Its revenue is up 9.6% over the last year.

We would argue that the improvement in revenue is good, but isn't particularly impressive, but the modest improvement in EPS is good. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Century Plyboards (India) Limited Been A Good Investment?

Boasting a total shareholder return of 106% over three years, Century Plyboards (India) Limited has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. In saying that, any proposed increase to CEO compensation will still be assessed on how reasonable it is based on performance and industry benchmarks.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 1 warning sign for Century Plyboards (India) 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.