It's Unlikely That Poddar Pigments Limited's (NSE:PODDARMENT) CEO Will See A Huge Pay Rise This Year

Key Insights

• Poddar Pigments to hold its Annual General Meeting on 27th of September
• CEO Shiv Poddar's total compensation includes salary of ₹12.9m
• Total compensation is 165% above industry average
• Over the past three years, Poddar Pigments' EPS grew by 17% and over the past three years, the total shareholder return was 86%

Under the guidance of CEO Shiv Poddar, Poddar Pigments Limited (NSE:PODDARMENT) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 27th of September. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

See our latest analysis for Poddar Pigments

Comparing Poddar Pigments Limited's CEO Compensation With The Industry

According to our data, Poddar Pigments Limited has a market capitalization of ₹3.7b, and paid its CEO total annual compensation worth ₹16m over the year to March 2023. That's a notable increase of 11% on last year. We note that the salary portion, which stands at ₹12.9m constitutes the majority of total compensation received by the CEO.

On comparing similar-sized companies in the Indian Chemicals industry with market capitalizations below ₹17b, we found that the median total CEO compensation was ₹6.0m. Accordingly, our analysis reveals that Poddar Pigments Limited pays Shiv Poddar north of the industry median. Furthermore, Shiv Poddar directly owns ₹188m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2023	2022	Proportion (2023)
Salary	₹13m	₹11m	81%
Other	₹3.0m	₹3.9m	19%
Total Compensation	₹16m	₹14m	100%

On an industry level, roughly 86% of total compensation represents salary and 14% is other remuneration. Poddar Pigments is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Poddar Pigments Limited's Growth Numbers

Poddar Pigments Limited has seen its earnings per share (EPS) increase by 17% a year over the past three years. It achieved revenue growth of 11% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. 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 Poddar Pigments Limited Been A Good Investment?

We think that the total shareholder return of 86%, over three years, would leave most Poddar Pigments 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 decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 2 warning signs for Poddar Pigments that investors should look into moving forward.

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.

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

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.