We Take A Look At Why Garden Reach Shipbuilders & Engineers Limited's (NSE:GRSE) CEO Compensation Is Well Earned

Key Insights

• Garden Reach Shipbuilders & Engineers to hold its Annual General Meeting on 19th of September
• CEO P. Hari's total compensation includes salary of ₹5.26m
• The total compensation is similar to the average for the industry
• Garden Reach Shipbuilders & Engineers' EPS grew by 37% over the past three years while total shareholder return over the past three years was 667%

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The performance at Garden Reach Shipbuilders & Engineers Limited (NSE:GRSE) has been quite strong recently and CEO P. Hari has played a role in it. Coming up to the next AGM on 19th of September, shareholders would be keeping this in mind. The focus will probably be on the future company strategy as shareholders cast their votes on resolutions such as executive remuneration and other matters. In light of the great performance, we discuss the case why we think CEO compensation is not excessive.

View our latest analysis for Garden Reach Shipbuilders & Engineers

Comparing Garden Reach Shipbuilders & Engineers Limited's CEO Compensation With The Industry

Our data indicates that Garden Reach Shipbuilders & Engineers Limited has a market capitalization of ₹296b, and total annual CEO compensation was reported as ₹7.8m for the year to March 2025. That is, the compensation was roughly the same as last year. We note that the salary portion, which stands at ₹5.26m constitutes the majority of total compensation received by the CEO.

On examining similar-sized companies in the Indian Aerospace & Defense industry with market capitalizations between ₹177b and ₹565b, we discovered that the median CEO total compensation of that group was ₹11m. So it looks like Garden Reach Shipbuilders & Engineers compensates P. Hari in line with the median for the industry.

Speaking on an industry level, nearly 93% of total compensation represents salary, while the remainder of 7% is other remuneration. It's interesting to note that Garden Reach Shipbuilders & Engineers allocates a smaller portion of compensation to salary in comparison to the broader industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Garden Reach Shipbuilders & Engineers Limited's Growth Numbers

Garden Reach Shipbuilders & Engineers Limited has seen its earnings per share (EPS) increase by 37% a year over the past three years. It achieved revenue growth of 40% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Garden Reach Shipbuilders & Engineers Limited Been A Good Investment?

Boasting a total shareholder return of 667% over three years, Garden Reach Shipbuilders & Engineers Limited has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

To Conclude...

The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

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 2 warning signs for Garden Reach Shipbuilders & Engineers that investors should be aware of in a dynamic business environment.

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.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.