It's Unlikely That Rajshree Polypack Limited's (NSE:RPPL) CEO Will See A Huge Pay Rise This Year

Key Insights

• Rajshree Polypack's Annual General Meeting to take place on 26th of September
• CEO Ramswaroop Thard's total compensation includes salary of ₹9.44m
• The total compensation is 117% higher than the average for the industry
• Over the past three years, Rajshree Polypack's EPS grew by 8.8% and over the past three years, the total loss to shareholders 31%

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The underwhelming share price performance of Rajshree Polypack Limited (NSE:RPPL) in the past three years would have disappointed many shareholders. However, what is unusual is that EPS growth has been positive, suggesting that the share price has diverged from fundamentals. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 26th of September. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.

See our latest analysis for Rajshree Polypack

Comparing Rajshree Polypack Limited's CEO Compensation With The Industry

Our data indicates that Rajshree Polypack Limited has a market capitalization of ₹1.7b, and total annual CEO compensation was reported as ₹9.4m for the year to March 2025. This was the same as last year. Notably, the salary of ₹9.4m is the entirety of the CEO compensation.

On comparing similar-sized companies in the Indian Packaging industry with market capitalizations below ₹18b, we found that the median total CEO compensation was ₹4.4m. Hence, we can conclude that Ramswaroop Thard is remunerated higher than the industry median. Furthermore, Ramswaroop Thard directly owns ₹271m worth of shares in the company, implying that they are deeply invested in the company's success.

Speaking on an industry level, all of total compensation represents salary, while non-salary remuneration is completely ignored. On a company level, Rajshree Polypack prefers to reward its CEO through a salary, opting not to pay Ramswaroop Thard through 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 Rajshree Polypack Limited's Growth Numbers

Rajshree Polypack Limited has seen its earnings per share (EPS) increase by 8.8% a year over the past three years. It achieved revenue growth of 19% over the last year.

This revenue growth could really point to a brighter future. And the improvement in EPSis modest but respectable. So while performance isn't amazing, we think it really does seem quite respectable. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Rajshree Polypack Limited Been A Good Investment?

The return of -31% over three years would not have pleased Rajshree Polypack Limited shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Rajshree Polypack pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. Shareholders have not seen their shares grow in value, rather they have seen their shares decline. The stock's movement is disjointed with the company's earnings growth, which ideally should move in the same direction. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. At the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.

CEO pay is simply one of the many factors that need to be considered while examining business performance. That's why we did our research, and identified 2 warning signs for Rajshree Polypack (of which 1 is potentially serious!) that you should know about in order to have a holistic understanding of the stock.

Important note: Rajshree Polypack 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. 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.