It Looks Like Shareholders Would Probably Approve Ganesha Ecosphere Limited's (NSE:GANECOS) CEO Compensation Package

Key Insights

• Ganesha Ecosphere's Annual General Meeting to take place on 21st of September
• CEO Sharad Sharma's total compensation includes salary of ₹3.60m
• Total compensation is similar to the industry average
• Ganesha Ecosphere's EPS grew by 13% over the past three years while total shareholder return over the past three years was 274%

It would be hard to discount the role that CEO Sharad Sharma has played in delivering the impressive results at Ganesha Ecosphere Limited (NSE:GANECOS) recently. Coming up to the next AGM on 21st of September, shareholders would be keeping this in mind. It is likely that the focus will be on company strategy going forward as shareholders hear from the board and 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.

See our latest analysis for Ganesha Ecosphere

Comparing Ganesha Ecosphere Limited's CEO Compensation With The Industry

Our data indicates that Ganesha Ecosphere Limited has a market capitalization of ₹22b, and total annual CEO compensation was reported as ₹25m for the year to March 2023. That's a notable increase of 84% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at ₹3.6m.

On comparing similar companies from the Indian Luxury industry with market caps ranging from ₹8.3b to ₹33b, we found that the median CEO total compensation was ₹24m. So it looks like Ganesha Ecosphere compensates Sharad Sharma in line with the median for the industry. What's more, Sharad Sharma holds ₹981m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2023	2022	Proportion (2023)
Salary	₹3.6m	₹3.0m	14%
Other	₹21m	₹11m	86%
Total Compensation	₹25m	₹14m	100%

Talking in terms of the industry, salary represents all of total compensation among the companies we analyzed, while other remuneration is, interestingly, completely ignored. In Ganesha Ecosphere's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Ganesha Ecosphere Limited's Growth

Over the past three years, Ganesha Ecosphere Limited has seen its earnings per share (EPS) grow by 13% per year. In the last year, its revenue is up 2.3%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Ganesha Ecosphere Limited Been A Good Investment?

Most shareholders would probably be pleased with Ganesha Ecosphere Limited for providing a total return of 274% over three years. 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.

In Summary...

Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. In our study, we found 2 warning signs for Ganesha Ecosphere you should be aware of, and 1 of them is a bit unpleasant.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.