We Discuss Why Time Technoplast Limited's (NSE:TIMETECHNO) CEO May Deserve A Higher Pay Packet

Shareholders will be pleased by the robust performance of Time Technoplast Limited (NSE:TIMETECHNO) recently and this will be kept in mind in the upcoming AGM on 28 September 2022. The focus will probably be on the future strategic initiatives that the board and management will put in place to improve the business rather than executive remuneration when they cast their votes on company resolutions. In our analysis below, we discuss why we think the CEO compensation looks acceptable and the case for a raise.

View our latest analysis for Time Technoplast

Comparing Time Technoplast Limited's CEO Compensation With The Industry

At the time of writing, our data shows that Time Technoplast Limited has a market capitalization of ₹25b, and reported total annual CEO compensation of ₹4.4m for the year to March 2022. We note that's an increase of 37% above last year. In particular, the salary of ₹2.95m, makes up a huge portion of the total compensation being paid to the CEO.

On examining similar-sized companies in the industry with market capitalizations between ₹16b and ₹64b, we discovered that the median CEO total compensation of that group was ₹42m. In other words, Time Technoplast pays its CEO lower than the industry median. Furthermore, Bharat Vageria directly owns ₹503m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2022	2021	Proportion (2022)
Salary	₹3.0m	₹1.7m	67%
Other	₹1.4m	₹1.5m	33%
Total Compensation	₹4.4m	₹3.2m	100%

Speaking on an industry level, nearly 99% of total compensation represents salary, while the remainder of 0.6466% is other remuneration. It's interesting to note that Time Technoplast allocates a smaller portion of compensation to salary in comparison to the broader industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Time Technoplast Limited's Growth Numbers

Earnings per share at Time Technoplast Limited are much the same as they were three years ago, albeit with slightly higher. Its revenue is up 17% over the last year.

We think the revenue growth is good. And the improvement in EPSis modest but respectable. So while performance isn't amazing, we think it really does seem quite respectable. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Time Technoplast Limited Been A Good Investment?

Most shareholders would probably be pleased with Time Technoplast Limited for providing a total return of 78% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Overall, the company hasn't done too poorly performance-wise, but we would like to see some improvement. If it continues on the same road, shareholders might feel even more confident about their investment, and have little to no objections concerning CEO pay. Rather, investors would more likely want to engage on discussions related to key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 1 warning sign for Time Technoplast that you should be aware of before investing.

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.