We Take A Look At Whether Time Technoplast Limited's (NSE:TIMETECHNO) CEO May Be Underpaid

Key Insights

• Time Technoplast will host its Annual General Meeting on 27th of September
• Total pay for CEO Bharat Vageria includes ₹3.36m salary
• The overall pay is 66% below the industry average
• Time Technoplast's EPS grew by 32% over the past three years while total shareholder return over the past three years was 488%

Shareholders will be pleased by the impressive results for Time Technoplast Limited (NSE:TIMETECHNO) recently and CEO Bharat Vageria has played a key role. This would be kept in mind at the upcoming AGM on 27th of September which will be a chance for them to hear the board review the financial results, discuss future company strategy and vote on resolutions such as executive remuneration and other matters. 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?

Our data indicates that Time Technoplast Limited has a market capitalization of ₹94b, and total annual CEO compensation was reported as ₹7.3m for the year to March 2024. We note that's an increase of 64% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at ₹3.4m.

For comparison, other companies in the Indian Packaging industry with market capitalizations ranging between ₹33b and ₹134b had a median total CEO compensation of ₹21m. This suggests that Bharat Vageria is paid below the industry median. What's more, Bharat Vageria holds ₹1.9b 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	₹3.4m	₹2.3m	46%
Other	₹4.0m	₹2.2m	54%
Total Compensation	₹7.3m	₹4.5m	100%

Speaking on an industry level, all of total compensation represents salary, while non-salary remuneration is completely ignored. It's interesting to note that Time Technoplast allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Time Technoplast Limited's Growth

Time Technoplast Limited has seen its earnings per share (EPS) increase by 32% a year over the past three years. Its revenue is up 16% over the last year.

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. 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 Time Technoplast Limited Been A Good Investment?

Boasting a total shareholder return of 488% over three years, Time Technoplast Limited has done well by shareholders. 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.

To Conclude...

The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

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.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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.