Here's Why Shareholders May Want To Be Cautious With Increasing PCBL Limited's (NSE:PCBL) CEO Pay Packet

Key Insights

• PCBL's Annual General Meeting to take place on 28th of August
• Salary of ₹149.4m is part of CEO Kaushik Roy's total remuneration
• The overall pay is 292% above the industry average
• PCBL's EPS grew by 3.5% over the past three years while total shareholder return over the past three years was 318%

Under the guidance of CEO Kaushik Roy, PCBL Limited (NSE:PCBL) has performed reasonably well recently. As shareholders go into the upcoming AGM on 28th of August, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

Check out our latest analysis for PCBL

How Does Total Compensation For Kaushik Roy Compare With Other Companies In The Industry?

According to our data, PCBL Limited has a market capitalization of ₹168b, and paid its CEO total annual compensation worth ₹160m over the year to March 2024. That's a notable increase of 10% on last year. We note that the salary portion, which stands at ₹149.4m constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the Indian Chemicals industry with market capitalizations ranging from ₹84b to ₹269b, the reported median CEO total compensation was ₹41m. Accordingly, our analysis reveals that PCBL Limited pays Kaushik Roy north of the industry median.

Component	2024	2023	Proportion (2024)
Salary	₹149m	₹134m	94%
Other	₹10m	₹11m	6%
Total Compensation	₹160m	₹145m	100%

On an industry level, around 87% of total compensation represents salary and 13% is other remuneration. There isn't a significant difference between PCBL and the broader market, in terms of salary allocation in the overall compensation package. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at PCBL Limited's Growth Numbers

Over the past three years, PCBL Limited has seen its earnings per share (EPS) grow by 3.5% per year. In the last year, its revenue is up 26%.

It's hard to interpret the strong revenue growth as anything other than a positive. With that in mind, the modestly improving EPS seems positive. We'd stop short of saying the business performance is amazing, but there are enough positives to justify further research, or even adding the stock to your watch-list. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has PCBL Limited Been A Good Investment?

Boasting a total shareholder return of 318% over three years, PCBL 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.

To Conclude...

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.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 2 warning signs for PCBL that investors should think about before committing capital to this stock.

Important note: PCBL 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.