A Quick Analysis On TCPL Packaging's (NSE:TCPLPACK) CEO Salary

This article will reflect on the compensation paid to Saket Kanoria who has served as CEO of TCPL Packaging Limited (NSE:TCPLPACK) since 1991. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for TCPL Packaging.

View our latest analysis for TCPL Packaging

Comparing TCPL Packaging Limited's CEO Compensation With the industry

At the time of writing, our data shows that TCPL Packaging Limited has a market capitalization of ₹3.4b, and reported total annual CEO compensation of ₹18m for the year to March 2020. That is, the compensation was roughly the same as last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at ₹5.4m.

In comparison with other companies in the industry with market capitalizations under ₹15b, the reported median total CEO compensation was ₹3.4m. Hence, we can conclude that Saket Kanoria is remunerated higher than the industry median. Furthermore, Saket Kanoria directly owns ₹89m 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. TCPL Packaging sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at TCPL Packaging Limited's Growth Numbers

TCPL Packaging Limited's earnings per share (EPS) grew 10% per year over the last three years. In the last year, its revenue changed by just 0.8%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. 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 TCPL Packaging Limited Been A Good Investment?

Given the total shareholder loss of 40% over three years, many shareholders in TCPL Packaging Limited are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

As we touched on above, TCPL Packaging Limited is currently paying its CEO higher than the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. However, the EPS growth is certainly impressive, but shareholder returns — over the same period — have been disappointing. Considering overall performance, we can't say Saket is underpaid, in fact compensation is definitely on the higher side.

CEO pay is simply one of the many factors that need to be considered while examining business performance. In our study, we found 4 warning signs for TCPL Packaging you should be aware of, and 2 of them shouldn't be ignored.

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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