We take a look at why the CEO of Polyplex Corporation Limited (NSE: POLYPLEX) won his payroll package
We were quite impressed with the performance at Polyplex Company Limited (NSE: POLYPLEX) recently and CEO Pranay Kothari deserves a mention for his role in it. As the next general meeting on September 29, 2021 approaches, shareholders will keep this in mind. It is likely that the focus will be on corporate strategy going forward as shareholders hear the board and vote on resolutions such as executive compensation and other matters. We think the CEO has done a pretty decent job and we are discussing why CEO compensation is appropriate.
Check out our latest review for Polyplex
Comparison of CEO Compensation of Polyplex Corporation Limited with Industry
Our data indicates that Polyplex Corporation Limited has a market capitalization of 54 billion yen and that the CEO’s total annual compensation was reported at 39 million yen for the year through March 2021. That is, the pay was about the same as last year. Note that the salary portion, which amounts to 39.0 M, constitutes the majority of the total compensation received by the CEO.
Compared to other companies in the industry with market caps ranging from 30 billion yen to 118 billion yen, the median total CEO compensation was 30 million yen. So it appears that Polyplex is offsetting Pranay Kothari in line with the industry median.
|Making up||2021||2020||Proportion (2021)|
At the industry level, approximately 87% of total compensation is salary and 13% is other compensation. Polyplex pays a high salary, focusing more on this aspect of pay compared to non-salary pay. If salary is the primary component of total compensation, this suggests that the CEO receives a higher fixed proportion of total compensation, regardless of performance.
A look at the growth figures of Polyplex Corporation Limited
Polyplex Corporation Limited has seen its earnings per share (EPS) increase by 30% per year over the past three years. It achieved a turnover growth of 15% compared to last year.
This shows that the company has improved recently and this is good news for shareholders. It’s really positive to see this kind of revenue growth in just one year. It suggests a healthy and growing business. Stepping away from the current shape for a second, it might be important to check out this free visual representation of what analysts expect for the future.
Has Polyplex Corporation Limited been a good investment?
With a total shareholder return of 315% over three years, Polyplex Corporation Limited has done well with shareholders. As a result, some may think that the CEO should be paid more than normal for companies of similar size.
Polyplex pays its CEO a majority of compensation through a salary. Given the decent performance of the company, the CEO compensation policy might not be the focus of shareholders at the AGM. Instead, investors might be more interested in discussions that would help manage their long-term growth expectations, such as the company’s business strategies and potential for future growth.
CEO compensation can have a huge impact on performance, but it’s only one element. We did our research and spotted 2 warning signs for Polyplex that investors should consider moving forward.
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