In This Article:
The CEO of Pearl Polymers Limited (NSE:PEARLPOLY) is R. Seth. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
View our latest analysis for Pearl Polymers
How Does R. Seth's Compensation Compare With Similar Sized Companies?
According to our data, Pearl Polymers Limited has a market capitalization of ₹157m, and paid its CEO total annual compensation worth ₹4.8m over the year to March 2019. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at ₹3.6m. We examined a group of similar sized companies, with market capitalizations of below ₹14b. The median CEO total compensation in that group is ₹2.4m.
As you can see, R. Seth is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Pearl Polymers Limited is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see a visual representation of the CEO compensation at Pearl Polymers, below.
Is Pearl Polymers Limited Growing?
On average over the last three years, Pearl Polymers Limited has shrunk earnings per share by 77% each year (measured with a line of best fit). Its revenue is down 3.5% over last year.
Unfortunately, earnings per share have trended lower over the last three years. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Although we don't have analyst forecasts you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Pearl Polymers Limited Been A Good Investment?
Given the total loss of 56% over three years, many shareholders in Pearl Polymers Limited are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
We compared total CEO remuneration at Pearl Polymers Limited with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.
We think many shareholders would be underwhelmed with the business growth over the last three years. Just as bad, share price gains for investors have failed to materialize, over the same period. Some might well form the view that the CEO is paid too generously! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Pearl Polymers.