We Think Shareholders Are Less Likely To Approve A Large Pay Rise For GACM Technologies Limited's (NSE:GATECH) CEO For Now

Key Insights

• GACM Technologies to hold its Annual General Meeting on 30th of September
• CEO Jonna Venkata Rao's total compensation includes salary of ₹12.0m
• The total compensation is 798% higher than the average for the industry
• Over the past three years, GACM Technologies' EPS grew by 67% and over the past three years, the total shareholder return was 60%

CEO Jonna Venkata Rao has done a decent job of delivering relatively good performance at GACM Technologies Limited (NSE:GATECH) recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 30th of September. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

View our latest analysis for GACM Technologies

How Does Total Compensation For Jonna Venkata Rao Compare With Other Companies In The Industry?

According to our data, GACM Technologies Limited has a market capitalization of ₹1.2b, and paid its CEO total annual compensation worth ₹12m over the year to March 2024. This was the same as last year. It is worth noting that the CEO compensation consists entirely of the salary, worth ₹12m.

In comparison with other companies in the Indian Capital Markets industry with market capitalizations under ₹17b, the reported median total CEO compensation was ₹1.3m. Hence, we can conclude that Jonna Venkata Rao is remunerated higher than the industry median.

Component	2024	2024	Proportion (2024)
Salary	₹12m	₹12m	100%
Other	-	-	-
Total Compensation	₹12m	₹12m	100%

Speaking on an industry level, all of total compensation represents salary, while non-salary remuneration is completely ignored. At the company level, GACM Technologies pays Jonna Venkata Rao solely through a salary, preferring to go down a conventional route. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

GACM Technologies Limited's Growth

GACM Technologies Limited's earnings per share (EPS) grew 67% per year over the last three years. It saw its revenue drop 34% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has GACM Technologies Limited Been A Good Investment?

Boasting a total shareholder return of 60% over three years, GACM Technologies 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...

GACM Technologies pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay 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 is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We did our research and identified 5 warning signs (and 3 which are potentially serious) in GACM Technologies we think you should know about.

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.