How Much Is Polyplex Corporation Limited (NSE:POLYPLEX) CEO Getting Paid?

Pranay Kothari has been the CEO of Polyplex Corporation Limited (NSE:POLYPLEX) since 2009, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Polyplex.

View our latest analysis for Polyplex

Comparing Polyplex Corporation Limited's CEO Compensation With the industry

Our data indicates that Polyplex Corporation Limited has a market capitalization of ₹25b, and total annual CEO compensation was reported as ₹39m for the year to March 2020. That's just a smallish increase of 7.8% on last year. Notably, the salary which is ₹39.1m, represents most of the total compensation being paid.

On comparing similar companies from the same industry with market caps ranging from ₹15b to ₹59b, we found that the median CEO total compensation was ₹18m. This suggests that Pranay Kothari is paid more than the median for the industry.

Talking in terms of the industry, salary represented approximately 89% of total compensation out of all the companies we analyzed, while other remuneration made up 11% of the pie. Investors will find it interesting that Polyplex pays the bulk of its rewards through a traditional salary, instead of non-salary benefits. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Polyplex Corporation Limited's Growth Numbers

Over the past three years, Polyplex Corporation Limited has seen its earnings per share (EPS) grow by 45% per year. Its revenue is up 8.0% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Polyplex Corporation Limited Been A Good Investment?

We think that the total shareholder return of 119%, over three years, would leave most Polyplex Corporation 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...

Pranay receives almost all of their compensation through a salary. As we noted earlier, Polyplex pays its CEO higher than the norm for similar-sized companies belonging to the same industry. But EPS growth and shareholder returns have been top-notch for the past three years. So, in acknowledgment of the overall excellent performance, we believe CEO compensation is appropriate. The pleasing shareholder returns are the cherry on top. We wouldn't be wrong in saying that shareholders feel that Pranay's performance creates value for the company.

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. We've identified 1 warning sign for Polyplex that investors should be aware of in a dynamic business environment.

Important note: Polyplex 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. 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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