We Take A Look At Why Polyplex Corporation Limited's (NSE:POLYPLEX) CEO Has Earned Their Pay Packet

We have been pretty impressed with the performance at Polyplex Corporation Limited (NSE:POLYPLEX) recently and CEO Pranay Kothari deserves a mention for their role in it. Coming up to the next AGM on 29 September 2021, shareholders would be keeping this in mind. 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. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.

Check out 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 ₹54b, and total annual CEO compensation was reported as ₹39m for the year to March 2021. That is, the compensation was roughly the same as last year. We note that the salary portion, which stands at ₹39.0m constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the industry with market capitalizations ranging from ₹30b to ₹118b, the reported median CEO total compensation was ₹30m. So it looks like Polyplex compensates Pranay Kothari in line with the median for the industry.

Component	2021	2020	Proportion (2021)
Salary	₹39m	₹39m	99%
Other	₹300k	₹236k	1%
Total Compensation	₹39m	₹39m	100%

On an industry level, roughly 87% of total compensation represents salary and 13% is other remuneration. Polyplex pays a high salary, concentrating more on this aspect of compensation in comparison to non-salary pay. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at Polyplex Corporation Limited's Growth Numbers

Polyplex Corporation Limited has seen its earnings per share (EPS) increase by 30% a year over the past three years. It achieved revenue growth of 15% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Polyplex Corporation Limited Been A Good Investment?

Boasting a total shareholder return of 315% over three years, Polyplex Corporation 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...

Polyplex pays its CEO a majority of compensation through a salary. Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus 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 can have a massive impact on performance, but it's just one element. We did our research and spotted 2 warning signs for Polyplex that investors should look into moving forward.

Switching gears from Polyplex, 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. 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.
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