How Does Tinplate Company of India's (NSE:TINPLATE) CEO Salary Compare to Peers?

Ramdas Murthy has been the CEO of The Tinplate Company of India Limited (NSE:TINPLATE) since 2018, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

View our latest analysis for Tinplate Company of India

Comparing The Tinplate Company of India Limited's CEO Compensation With the industry

At the time of writing, our data shows that The Tinplate Company of India Limited has a market capitalization of ₹18b, and reported total annual CEO compensation of ₹17m for the year to March 2020. Notably, that's a decrease of 13% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at ₹5.0m.

In comparison with other companies in the industry with market capitalizations ranging from ₹7.4b to ₹30b, the reported median CEO total compensation was ₹30m. This suggests that Ramdas Murthy is paid below the industry median.

On an industry level, around 99% of total compensation represents salary and 1.1% is other remuneration. Tinplate Company of India 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.

The Tinplate Company of India Limited's Growth

The Tinplate Company of India Limited's earnings per share (EPS) grew 7.4% per year over the last three years. Its revenue is down 15% over the previous year.

We generally like to see a little revenue growth, but the modest improvement in EPS is good. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. 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 The Tinplate Company of India Limited Been A Good Investment?

Since shareholders would have lost about 19% over three years, some The Tinplate Company of India Limited investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

As we touched on above, The Tinplate Company of India Limited is currently paying its CEO below the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. But the EPS growth is lacking, just like the returns (over three years). So while we don't think, Ramdas is paid too much, shareholders may hope that business performance translates to investment returns before pay rises are given out.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 1 warning sign for Tinplate Company of India that investors should be aware of in a dynamic business environment.

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This article by Simply Wall St is general in nature. 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.
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