The performance at The Tinplate Company of India Limited (NSE:TINPLATE) has been quite strong recently and CEO Ramdas Murthy has played a role in it. Shareholders will have this at the front of their minds in the upcoming AGM on 30 July 2021. It is likely that the focus will be on company strategy going forward as shareholders hear from the board and cast their votes on resolutions such as executive remuneration and other matters. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.
How Does Total Compensation For Ramdas Murthy Compare With Other Companies In The Industry?
Our data indicates that The Tinplate Company of India Limited has a market capitalization of ₹26b, and total annual CEO compensation was reported as ₹21m for the year to March 2021. That's a notable increase of 24% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at ₹5.0m.
For comparison, other companies in the same industry with market capitalizations ranging between ₹15b and ₹60b had a median total CEO compensation of ₹27m. So it looks like Tinplate Company of India compensates Ramdas Murthy in line with the median for the industry.
On an industry level, around 100% of total compensation represents salary and 0.3493% is other remuneration. Tinplate Company of India pays a modest slice of remuneration through salary, as compared 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.
The Tinplate Company of India Limited's Growth
Over the past three years, The Tinplate Company of India Limited has seen its earnings per share (EPS) grow by 36% per year. Its revenue is up 44% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. 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 The Tinplate Company of India Limited Been A Good Investment?
We think that the total shareholder return of 67%, over three years, would leave most The Tinplate Company of India Limited shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
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. 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.
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 Tinplate Company of India that investors should think about before committing capital to this stock.
Important note: Tinplate Company of India 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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