How Much Does Phillips Carbon Black's (NSE:PHILIPCARB) CEO Make?

Kaushik Roy became the CEO of Phillips Carbon Black Limited (NSE:PHILIPCARB) in 2014, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also assess whether Phillips Carbon Black pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

See our latest analysis for Phillips Carbon Black

Comparing Phillips Carbon Black Limited's CEO Compensation With the industry

According to our data, Phillips Carbon Black Limited has a market capitalization of ₹33b, and paid its CEO total annual compensation worth ₹116m over the year to March 2020. Notably, that's an increase of 34% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at ₹46m.

On examining similar-sized companies in the industry with market capitalizations between ₹15b and ₹58b, we discovered that the median CEO total compensation of that group was ₹18m. This suggests that Kaushik Roy is paid more than the median for the industry.

On an industry level, roughly 89% of total compensation represents salary and 11% is other remuneration. In Phillips Carbon Black's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at Phillips Carbon Black Limited's Growth Numbers

Phillips Carbon Black Limited has seen its earnings per share (EPS) increase by 4.1% a year over the past three years. It saw its revenue drop 28% over the last year.

We would prefer it if there was revenue growth, but it is good to see a modest EPS growth at least. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. 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 Phillips Carbon Black Limited Been A Good Investment?

Since shareholders would have lost about 18% over three years, some Phillips Carbon Black Limited investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

As we touched on above, Phillips Carbon Black Limited is currently paying its CEO higher than the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Over the last three years, shareholder returns have been downright disappointing for Phillips Carbon Black, and although EPS growth is steady, it hasn't set the world on fire. This doesn't look great when you consider Kaushik is taking home compensation north of the industry average. All things considered, we believe shareholders would be disappointed to see Kaushik's compensation grow without first seeing an improvement in the performance of the company.

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 Phillips Carbon Black that investors should think about before committing capital to this stock.

Switching gears from Phillips Carbon Black, 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. 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.
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