Is Jindal Poly Films Limited's (NSE:JINDALPOLY) CEO Paid At A Competitive Rate?

Simply Wall St

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The CEO of Jindal Poly Films Limited (NSE:JINDALPOLY) is Rathi Pal. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.

See our latest analysis for Jindal Poly Films

How Does Rathi Pal's Compensation Compare With Similar Sized Companies?

Our data indicates that Jindal Poly Films Limited is worth ₹11b, and total annual CEO compensation is ₹3.5m. (This is based on the year to March 2018). While we always look at total compensation first, we note that the salary component is less, at ₹880k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of ₹6.9b to ₹27b. The median total CEO compensation was ₹18m.

A first glance this seems like a real positive for shareholders, since Rathi Pal is paid less than the average total compensation paid by similar sized companies. However, before we heap on the praise, we should delve deeper to understand business performance.

You can see, below, how CEO compensation at Jindal Poly Films has changed over time.

NSEI:JINDALPOLY CEO Compensation, July 16th 2019

Is Jindal Poly Films Limited Growing?

On average over the last three years, Jindal Poly Films Limited has shrunk earnings per share by 97% each year (measured with a line of best fit). In the last year, its revenue is down -42%.

Few shareholders would be pleased to read that earnings per share are lower over three years. This is compounded by the fact revenue is actually down on last 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 could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Jindal Poly Films Limited Been A Good Investment?

With a three year total loss of 44%, Jindal Poly Films Limited would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

It appears that Jindal Poly Films Limited remunerates its CEO below most similar sized companies.

Shareholders should note that compensation for Rathi Pal is under the median of a group of similar sized companies. But then, EPS growth is lacking and so are the returns to shareholders. While one could argue it is appropriate for the CEO to be paid less than other CEOs of similar sized companies, given company performance, we would not call the pay overly generous. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Jindal Poly Films (free visualization of insider trades).

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.