We Think Some Shareholders May Hesitate To Increase TCPL Packaging Limited's (NSE:TCPLPACK) CEO Compensation

Key Insights

• TCPL Packaging's Annual General Meeting to take place on 30th of July
• Salary of ₹8.40m is part of CEO Saket Kanoria's total remuneration
• Total compensation is 56% above industry average
• TCPL Packaging's EPS grew by 45% over the past three years while total shareholder return over the past three years was 351%

CEO Saket Kanoria has done a decent job of delivering relatively good performance at TCPL Packaging Limited (NSE:TCPLPACK) recently. As shareholders go into the upcoming AGM on 30th of July, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

See 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 ₹22b, and reported total annual CEO compensation of ₹55m for the year to March 2024. This means that the compensation hasn't changed much from last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at ₹8.4m.

For comparison, other companies in the Indian Packaging industry with market capitalizations ranging between ₹8.4b and ₹33b had a median total CEO compensation of ₹35m. Accordingly, our analysis reveals that TCPL Packaging Limited pays Saket Kanoria north of the industry median. What's more, Saket Kanoria holds ₹592m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2024	2023	Proportion (2024)
Salary	₹8.4m	₹7.8m	15%
Other	₹46m	₹46m	85%
Total Compensation	₹55m	₹53m	100%

Talking in terms of the industry, salary represented approximately 77% of total compensation out of all the companies we analyzed, while other remuneration made up 23% of the pie. In TCPL Packaging's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

TCPL Packaging Limited's Growth

Over the past three years, TCPL Packaging Limited has seen its earnings per share (EPS) grow by 45% per year. In the last year, its revenue is up 4.5%.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see modest revenue growth, suggesting the underlying business is healthy. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has TCPL Packaging Limited Been A Good Investment?

We think that the total shareholder return of 351%, over three years, would leave most TCPL Packaging 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, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 2 warning signs for TCPL Packaging that investors should think about before committing capital to this stock.

Important note: TCPL Packaging 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.

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