Here's Why Shareholders Will Not Be Complaining About Pearl Polymers Limited's (NSE:PEARLPOLY) CEO Pay Packet

Key Insights

• Pearl Polymers to hold its Annual General Meeting on 22nd of September
• Total pay for CEO Udit Seth includes ₹4.19m salary
• The total compensation is similar to the average for the industry
• Over the past three years, Pearl Polymers' EPS grew by 72% and over the past three years, the total shareholder return was 40%

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We have been pretty impressed with the performance at Pearl Polymers Limited (NSE:PEARLPOLY) recently and CEO Udit Seth deserves a mention for their role in it. Shareholders will have this at the front of their minds in the upcoming AGM on 22nd of September. It is likely that the focus will be on company strategy going forward as shareholders hear from the board and cast their votes on resolutions such as executive remuneration and other matters. Here is our take on why we think CEO compensation is not extravagant.

Check out our latest analysis for Pearl Polymers

Comparing Pearl Polymers Limited's CEO Compensation With The Industry

At the time of writing, our data shows that Pearl Polymers Limited has a market capitalization of ₹525m, and reported total annual CEO compensation of ₹4.8m for the year to March 2025. Notably, that's a decrease of 19% over the year before. Notably, the salary which is ₹4.19m, represents most of the total compensation being paid.

In comparison with other companies in the Indian Packaging industry with market capitalizations under ₹18b, the reported median total CEO compensation was ₹4.8m. This suggests that Pearl Polymers remunerates its CEO largely in line with the industry average. Furthermore, Udit Seth directly owns ₹20m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2025	2024	Proportion (2025)
Salary	₹4.2m	₹4.2m	87%
Other	₹612k	₹1.7m	13%
Total Compensation	₹4.8m	₹5.9m	100%

Speaking on an industry level, all of total compensation represents salary, while non-salary remuneration is completely ignored. It's interesting to note that Pearl Polymers allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Pearl Polymers Limited's Growth Numbers

Pearl Polymers Limited's earnings per share (EPS) grew 72% per year over the last three years. In the last year, its revenue is up 19%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Pearl Polymers Limited Been A Good Investment?

We think that the total shareholder return of 40%, over three years, would leave most Pearl Polymers Limited shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

To Conclude...

The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in 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. We did our research and identified 4 warning signs (and 3 which are potentially serious) in Pearl Polymers we think you should know about.

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.

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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.