Pidilite Industries Limited's (NSE:PIDILITIND) CEO Looks Like They Deserve Their Pay Packet

Key Insights

• Pidilite Industries' Annual General Meeting to take place on 7th of August
• Total pay for CEO Bharat Puri includes ₹64.5m salary
• The overall pay is comparable to the industry average
• Over the past three years, Pidilite Industries' EPS grew by 15% and over the past three years, the total shareholder return was 43%

We have been pretty impressed with the performance at Pidilite Industries Limited (NSE:PIDILITIND) recently and CEO Bharat Puri deserves a mention for their role in it. Coming up to the next AGM on 7th of August, shareholders would be keeping this in mind. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.

View our latest analysis for Pidilite Industries

Comparing Pidilite Industries Limited's CEO Compensation With The Industry

Our data indicates that Pidilite Industries Limited has a market capitalization of ₹1.6t, and total annual CEO compensation was reported as ₹175m for the year to March 2024. That's a notable increase of 16% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at ₹65m.

In comparison with other companies in the Indian Chemicals industry with market capitalizations over ₹670b, the reported median total CEO compensation was ₹186m. This suggests that Pidilite Industries remunerates its CEO largely in line with the industry average. Furthermore, Bharat Puri directly owns ₹2.2b worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	₹65m	₹61m	37%
Other	₹110m	₹90m	63%
Total Compensation	₹175m	₹151m	100%

Speaking on an industry level, nearly 86% of total compensation represents salary, while the remainder of 14% is other remuneration. It's interesting to note that Pidilite Industries allocates a smaller portion of compensation to salary in comparison 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 Pidilite Industries Limited's Growth Numbers

Pidilite Industries Limited's earnings per share (EPS) grew 15% per year over the last three years. In the last year, its revenue is up 4.9%.

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 Pidilite Industries Limited Been A Good Investment?

Boasting a total shareholder return of 43% over three years, Pidilite Industries 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.

In Summary...

Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 2 warning signs for Pidilite Industries that you should be aware of before investing.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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