It's Unlikely That Control Print Limited's (NSE:CONTROLPR) CEO Will See A Huge Pay Rise This Year

Share price growth at Control Print Limited (NSE:CONTROLPR) has remained rather flat over the last few years and it may be because earnings has struggled to grow at all. Some of these issues will occupy shareholders' minds as the AGM rolls around on 19 July 2021. One way that shareholders can influence managerial decisions is through voting on CEO and executive remuneration packages, which studies show could impact company performance. From the data that we gathered, we think that shareholders should hold off on a raise on CEO compensation until performance starts to show some improvement.

View our latest analysis for Control Print

Comparing Control Print Limited's CEO Compensation With the industry

Our data indicates that Control Print Limited has a market capitalization of ₹6.3b, and total annual CEO compensation was reported as ₹17m for the year to March 2021. That's slightly lower by 3.5% over the previous year. While we always look at total compensation first, our analysis shows that the salary component is less, at ₹3.3m.

In comparison with other companies in the industry with market capitalizations under ₹15b, the reported median total CEO compensation was ₹2.6m. Hence, we can conclude that Basant Kumar Kabra is remunerated higher than the industry median. Furthermore, Basant Kumar Kabra directly owns ₹406m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2021	2020	Proportion (2021)
Salary	₹3.3m	₹3.3m	19%
Other	₹14m	₹15m	81%
Total Compensation	₹17m	₹18m	100%

Speaking on an industry level, all of total compensation represents salary, while non-salary remuneration is completely ignored. Control Print pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Control Print Limited's Growth

Over the last three years, Control Print Limited has shrunk its earnings per share by 3.5% per year. In the last year, its revenue is up 4.5%.

The decline in EPS is a bit concerning. And the modest revenue growth over 12 months isn't much comfort against the reduced EPS. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. 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 Control Print Limited Been A Good Investment?

Control Print Limited has not done too badly by shareholders, with a total return of 4.7%, over three years. It would be nice to see that metric improve in the future. In light of that, investors might probably want to see an improvement on their returns before they feel generous about increasing the CEO remuneration.

In Summary...

While it's true that the share price growth hasn't been bad, it's hard to overlook the lack of earnings growth and this makes us question whether there will be any strong catalyst for the stock to improve. Shareholders should make the most of the coming opportunity to question the board on key concerns they may have and revisit their investment thesis with regards to the company.

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. We've identified 3 warning signs for Control Print that investors should be aware of in a dynamic business environment.

Important note: Control Print 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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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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