What We Learned About Ginni Filaments' (NSE:GINNIFILA) CEO Compensation

Shishir Jaipuria is the CEO of Ginni Filaments Limited (NSE:GINNIFILA), and in this article, we analyze the executive's compensation package with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Ginni Filaments.

View our latest analysis for Ginni Filaments

How Does Total Compensation For Shishir Jaipuria Compare With Other Companies In The Industry?

According to our data, Ginni Filaments Limited has a market capitalization of ₹1.4b, and paid its CEO total annual compensation worth ₹17m over the year to March 2020. Notably, that's an increase of 14% over the year before. In particular, the salary of ₹14.9m, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the industry with market capitalizations below ₹15b, reported a median total CEO compensation of ₹3.8m. Accordingly, our analysis reveals that Ginni Filaments Limited pays Shishir Jaipuria north of the industry median. Furthermore, Shishir Jaipuria directly owns ₹479m worth of shares in the company, implying that they are deeply invested in the company's success.

Talking in terms of the industry, salary represents all of total compensation among the companies we analyzed, while other remuneration is, interestingly, completely ignored. Ginni Filaments sets aside a smaller share of compensation for salary, in comparison to the overall industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at Ginni Filaments Limited's Growth Numbers

Over the past three years, Ginni Filaments Limited has seen its earnings per share (EPS) grow by 48% per year. Its revenue is down 8.8% over the previous year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Ginni Filaments Limited Been A Good Investment?

With a three year total loss of 45% for the shareholders, Ginni Filaments Limited would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

As previously discussed, Shishir is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. However, we must not forget that the EPS growth has been very strong, but it's disappointing to see negative shareholder returns over the same period. Although we'd stop short of calling it inappropriate, we think Shishir is earning a very handsome sum.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We identified 5 warning signs for Ginni Filaments (2 shouldn't be ignored!) that you should be aware of before investing here.

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. 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.
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