This article will reflect on the compensation paid to Subhas Pramanik who has served as CEO of GOCL Corporation Limited (NSE:GOCLCORP) since 2005. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for GOCL.
Check out our latest analysis for GOCL
How Does Total Compensation For Subhas Pramanik Compare With Other Companies In The Industry?
Our data indicates that GOCL Corporation Limited has a market capitalization of ₹8.8b, and total annual CEO compensation was reported as ₹17m for the year to March 2020. That's just a smallish increase of 6.2% on last year. We note that the salary portion, which stands at ₹11.6m constitutes the majority of total compensation received by the CEO.
In comparison with other companies in the industry with market capitalizations under ₹15b, the reported median total CEO compensation was ₹7.0m. Accordingly, our analysis reveals that GOCL Corporation Limited pays Subhas Pramanik north of the industry median. What's more, Subhas Pramanik holds ₹2.1m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
| Component | 2020 | 2019 | Proportion (2020) |
| Salary | ₹12m | ₹11m | 70% |
| Other | ₹5.0m | ₹4.2m | 30% |
| Total Compensation | ₹17m | ₹16m | 100% |
On an industry level, roughly 89% of total compensation represents salary and 11% is other remuneration. GOCL pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
A Look at GOCL Corporation Limited's Growth Numbers
GOCL Corporation Limited has seen its earnings per share (EPS) increase by 24% a year over the past three years. It saw its revenue drop 11% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has GOCL Corporation Limited Been A Good Investment?
With a three year total loss of 65% for the shareholders, GOCL Corporation Limited would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
As we touched on above, GOCL Corporation Limited is currently paying its CEO higher than the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. But the company has impressed with its EPS growth, but it's disappointing to see negative shareholder returns over the same period. Although we don't think the CEO pay is too high, considering negative investor returns, it is more generous than modest.
CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. That's why we did our research, and identified 2 warning signs for GOCL (of which 1 can't be ignored!) that you should know about in order to have a holistic understanding of the stock.
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.
If you’re looking to trade GOCL, open an account with the lowest-cost* platform trusted by professionals, Interactive Brokers. Their clients from over 200 countries and territories trade stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted
New: Manage All Your Stock Portfolios in One Place
We've created the ultimate portfolio companion for stock investors, and it's free.
• Connect an unlimited number of Portfolios and see your total in one currency
• Be alerted to new Warning Signs or Risks via email or mobile
• Track the Fair Value of your stocks
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.
*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.
About NSEI:GOCLCORP
GOCL
Engages in the energetics, mining and infrastructure, and realty businesses in India and internationally.
Low with questionable track record.
