Increases to Goldiam International Limited's (NSE:GOLDIAM) CEO Compensation Might Cool off for now

Under the guidance of CEO Rashesh Bhansali, Goldiam International Limited (NSE:GOLDIAM) has performed reasonably well recently. As shareholders go into the upcoming AGM on 28 September 2022, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders will still be cautious of paying the CEO excessively.

View our latest analysis for Goldiam International

Comparing Goldiam International Limited's CEO Compensation With The Industry

At the time of writing, our data shows that Goldiam International Limited has a market capitalization of ₹15b, and reported total annual CEO compensation of ₹39m for the year to March 2022. Notably, that's an increase of 72% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at ₹12m.

On comparing similar companies from the same industry with market caps ranging from ₹8.0b to ₹32b, we found that the median CEO total compensation was ₹23m. Accordingly, our analysis reveals that Goldiam International Limited pays Rashesh Bhansali north of the industry median. Moreover, Rashesh Bhansali also holds ₹6.7b worth of Goldiam International stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2022	2021	Proportion (2022)
Salary	₹12m	₹11m	30%
Other	₹27m	₹12m	70%
Total Compensation	₹39m	₹23m	100%

Talking in terms of the industry, salary represented approximately 100% of total compensation out of all the companies we analyzed, while other remuneration made up 0.2268% of the pie. 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 is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Goldiam International Limited's Growth Numbers

Goldiam International Limited's earnings per share (EPS) grew 32% per year over the last three years. In the last year, its revenue is up 31%.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Goldiam International Limited Been A Good Investment?

Boasting a total shareholder return of 481% over three years, Goldiam International Limited has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 1 warning sign for Goldiam International that investors should think about before committing capital to this 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.

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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.