Increases to CEO Compensation Might Be Put On Hold For Now at GACM Technologies Limited (NSE:GATECHDVR)

Key Insights

• GACM Technologies to hold its Annual General Meeting on 30th of September
• Total pay for CEO Jonna Venkata Rao includes ₹12.0m salary
• The overall pay is 798% above the industry average
• Over the past three years, GACM Technologies' EPS grew by 67% and over the past three years, the total loss to shareholders 88%

Shareholders of GACM Technologies Limited (NSE:GATECHDVR) will have been dismayed by the negative share price return over the last three years. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. These are some of the concerns that shareholders may want to bring up at the next AGM held on 30th of September. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.

View our latest analysis for GACM Technologies

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

At the time of writing, our data shows that GACM Technologies Limited has a market capitalization of ₹1.2b, and reported total annual CEO compensation of ₹12m for the year to March 2024. This was the same as last year. Notably, the salary of ₹12m is the entirety of the CEO compensation.

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%

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. On a company level, GACM Technologies prefers to reward its CEO through a salary, opting not to pay Jonna Venkata Rao through non-salary benefits. 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

Over the past three years, GACM Technologies Limited has seen its earnings per share (EPS) grow by 67% per year. It saw its revenue drop 34% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. 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?

Few GACM Technologies Limited shareholders would feel satisfied with the return of -88% over three years. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

GACM Technologies rewards its CEO solely through a salary, ignoring non-salary benefits completely. Shareholders have not seen their shares grow in value, rather they have seen their shares decline. A huge lag in share price growth when earnings have grown may indicate there could be other issues that are affecting the company at the moment that the market is focused on. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. At the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.

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. In our study, we found 5 warning signs for GACM Technologies you should be aware of, and 4 of them shouldn't be ignored.

Important note: GACM Technologies is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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.