How Much is Geojit Financial Services' (NSE:GEOJITFSL) CEO Getting Paid?

C. George is the CEO of Geojit Financial Services Limited (NSE:GEOJITFSL), and in this article, we analyze the executive's compensation package with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

Check out our latest analysis for Geojit Financial Services

Comparing Geojit Financial Services Limited's CEO Compensation With the industry

At the time of writing, our data shows that Geojit Financial Services Limited has a market capitalization of ₹9.6b, and reported total annual CEO compensation of ₹20m for the year to March 2020. That's just a smallish increase of 7.4% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at ₹9.2m.

On comparing similar-sized companies in the industry with market capitalizations below ₹15b, we found that the median total CEO compensation was ₹1.2m. Hence, we can conclude that C. George is remunerated higher than the industry median. Moreover, C. George also holds ₹2.0b worth of Geojit Financial Services stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

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. Geojit Financial Services sets aside a smaller share of compensation for salary, in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Geojit Financial Services Limited's Growth

Geojit Financial Services Limited has seen its earnings per share (EPS) increase by 3.6% a year over the past three years. Its revenue is up 7.3% over the last year.

We'd prefer higher revenue growth, but we're happy with the modest EPS growth. So there are some positives here, but not enough to earn high praise. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Geojit Financial Services Limited Been A Good Investment?

Since shareholders would have lost about 61% over three years, some Geojit Financial Services Limited investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

As we noted earlier, Geojit Financial Services pays its CEO higher than the norm for similar-sized companies belonging to the same industry. Over the last three years, shareholder returns have been downright disappointing for Geojit Financial Services, and although EPS growth is steady, it hasn't set the world on fire. This doesn't look good when you see that C. is earning more than the industry median. All things considered, we believe shareholders would be disappointed to see C.'s compensation grow without first seeing an improvement in the performance of the company.

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. That's why we did our research, and identified 3 warning signs for Geojit Financial Services (of which 1 is significant!) that you should know about in order to have a holistic understanding of the stock.

Important note: Geojit Financial Services 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. 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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