Shareholders May Not Be So Generous With Greenply Industries Limited's (NSE:GREENPLY) CEO Compensation And Here's Why

Key Insights

• Greenply Industries to hold its Annual General Meeting on 20th of September
• CEO Manoj Tulsian's total compensation includes salary of ₹20.5m
• Total compensation is 97% above industry average
• Over the past three years, Greenply Industries' EPS grew by 68% and over the past three years, the total shareholder return was 73%

Performance at Greenply Industries Limited (NSE:GREENPLY) has been reasonably good and CEO Manoj Tulsian 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 20th of September. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

See our latest analysis for Greenply Industries

How Does Total Compensation For Manoj Tulsian Compare With Other Companies In The Industry?

At the time of writing, our data shows that Greenply Industries Limited has a market capitalization of ₹20b, and reported total annual CEO compensation of ₹67m for the year to March 2023. We note that's an increase of 30% above last year. While we always look at total compensation first, our analysis shows that the salary component is less, at ₹21m.

On comparing similar companies from the Indian Forestry industry with market caps ranging from ₹8.3b to ₹33b, we found that the median CEO total compensation was ₹34m. Hence, we can conclude that Manoj Tulsian is remunerated higher than the industry median.

Component	2023	2022	Proportion (2023)
Salary	₹21m	₹21m	30%
Other	₹47m	₹31m	70%
Total Compensation	₹67m	₹52m	100%

Speaking on an industry level, nearly 87% of total compensation represents salary, while the remainder of 13% is other remuneration. Greenply Industries pays a modest slice of remuneration through salary, as compared to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at Greenply Industries Limited's Growth Numbers

Greenply Industries Limited has seen its earnings per share (EPS) increase by 68% a year over the past three years. In the last year, its revenue is up 6.4%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Greenply Industries Limited Been A Good Investment?

We think that the total shareholder return of 73%, over three years, would leave most Greenply Industries Limited shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay 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.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We did our research and identified 2 warning signs (and 1 which is significant) in Greenply Industries we think you should know about.

Important note: Greenply Industries is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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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.