Our View On Geojit Financial Services' (NSE:GEOJITFSL) CEO Pay

The CEO of Geojit Financial Services Limited (NSE:GEOJITFSL) is Chenayappillil George, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

View our latest analysis for Geojit Financial Services

How Does Total Compensation For Chenayappillil George Compare With Other Companies In The Industry?

According to our data, Geojit Financial Services Limited has a market capitalization of ₹13b, and paid its CEO total annual compensation worth ₹20m over the year to March 2020. That's just a smallish increase of 7.4% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at ₹9.2m.

On examining similar-sized companies in the industry with market capitalizations between ₹7.4b and ₹29b, we discovered that the median CEO total compensation of that group was ₹10m. This suggests that Chenayappillil George is paid more than the median for the industry. What's more, Chenayappillil George holds ₹2.7b worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Talking in terms of the industry, salary represents all of total compensation among the companies we analyzed, while other remuneration is, interestingly, completely ignored. Geojit Financial Services pays a modest slice of remuneration through salary, as compared to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at Geojit Financial Services Limited's Growth Numbers

Geojit Financial Services Limited has seen its earnings per share (EPS) increase by 12% a year over the past three years. In the last year, its revenue is up 23%.

Shareholders would be glad to know that the company has improved itself over the last few years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Geojit Financial Services Limited Been A Good Investment?

Since shareholders would have lost about 43% over three years, some Geojit Financial Services Limited investors would surely be feeling negative emotions. So shareholders would probably want the company to be lessto generous with CEO compensation.

To Conclude...

As we touched on above, Geojit Financial Services 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. However, the EPS growth is certainly impressive, but we cannot say the same about the uninspiring shareholder returns (over the last three years). Although we don't think the CEO pay is too high, considering negative investor returns, it is more generous than modest.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 2 warning signs for Geojit Financial Services that you should be aware of before investing.

Switching gears from Geojit Financial Services, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

If you decide to trade Geojit Financial Services, use the lowest-cost* platform that is rated #1 Overall by Barron’s, Interactive Brokers. Trade stocks, options, futures, forex, bonds and funds on 135 markets, all from a single integrated account. Promoted

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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.