We Discuss Why The CEO Of Time Technoplast Limited (NSE:TIMETECHNO) Is Due For A Pay Rise

Key Insights

• Time Technoplast's Annual General Meeting to take place on 26th of September
• CEO Bharat Vageria's total compensation includes salary of ₹2.28m
• Total compensation is 90% below industry average
• Time Technoplast's total shareholder return over the past three years was 326% while its EPS grew by 27% over the past three years

The impressive results at Time Technoplast Limited (NSE:TIMETECHNO) recently will be great news for shareholders. At the upcoming AGM on 26th of September, they will get a chance to hear the board review the company results, discuss future strategy and cast their vote on any resolutions such as executive remuneration. Let's take a look at why we think the CEO has done a good job and we'll present the case for a bump in pay.

Check out our latest analysis for Time Technoplast

How Does Total Compensation For Bharat Vageria Compare With Other Companies In The Industry?

At the time of writing, our data shows that Time Technoplast Limited has a market capitalization of ₹35b, and reported total annual CEO compensation of ₹4.5m for the year to March 2023. This means that the compensation hasn't changed much from last year. In particular, the salary of ₹2.28m, makes up a fairly large portion of the total compensation being paid to the CEO.

On examining similar-sized companies in the Indian Packaging industry with market capitalizations between ₹17b and ₹67b, we discovered that the median CEO total compensation of that group was ₹47m. In other words, Time Technoplast pays its CEO lower than the industry median. What's more, Bharat Vageria holds ₹702m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2023	2022	Proportion (2023)
Salary	₹2.3m	₹3.0m	51%
Other	₹2.2m	₹1.4m	49%
Total Compensation	₹4.5m	₹4.4m	100%

Speaking on an industry level, nearly 77% of total compensation represents salary, while the remainder of 23% is other remuneration. Time Technoplast sets aside a smaller share of compensation for salary, in comparison to the overall industry. 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.

Time Technoplast Limited's Growth

Time Technoplast Limited's earnings per share (EPS) grew 27% per year over the last three years. In the last year, its revenue is up 15%.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. 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 Time Technoplast Limited Been A Good Investment?

We think that the total shareholder return of 326%, over three years, would leave most Time Technoplast Limited shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 1 warning sign for Time Technoplast that investors should look into moving forward.

Switching gears from Time Technoplast, 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.