How Much Is Goldiam International's (NSE:GOLDIAM) CEO Getting Paid?

The CEO of Goldiam International Limited (NSE:GOLDIAM) is Rashesh Bhansali, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also assess whether Goldiam International pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

See our latest analysis for Goldiam International

How Does Total Compensation For Rashesh Bhansali Compare With Other Companies In The Industry?

Our data indicates that Goldiam International Limited has a market capitalization of ₹7.7b, and total annual CEO compensation was reported as ₹14m for the year to March 2020. That is, the compensation was roughly the same as last year. We note that the salary portion, which stands at ₹12.0m constitutes the majority of total compensation received by the CEO.

On comparing similar-sized companies in the industry with market capitalizations below ₹15b, we found that the median total CEO compensation was ₹3.6m. This suggests that Rashesh Bhansali is paid more than the median for the industry. Furthermore, Rashesh Bhansali directly owns ₹3.4b worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, it's fascinating to see that all of total compensation represents salary and non-salary benefits do not factor into the equation at all. It's interesting to note that Goldiam International allocates a smaller portion of compensation to salary in comparison 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 Goldiam International Limited's Growth Numbers

Goldiam International Limited has seen its earnings per share (EPS) increase by 25% a year over the past three years. In the last year, its revenue is down 8.1%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. 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 Goldiam International Limited Been A Good Investment?

We think that the total shareholder return of 450%, over three years, would leave most Goldiam International Limited shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

As we touched on above, Goldiam International 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. Importantly though, EPS growth and shareholder returns are very impressive over the last three years. So, in acknowledgment of the overall excellent performance, we believe CEO compensation is appropriate. Given the strong history of shareholder returns, the shareholders are probably very happy with Rashesh's performance.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 3 warning signs for Goldiam International that you should be aware of before investing.

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. 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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