Shareholders May Be More Conservative With Geojit Financial Services Limited's (NSE:GEOJITFSL) CEO Compensation For Now

Key Insights

• Geojit Financial Services will host its Annual General Meeting on 12th of July
• Total pay for CEO Chenayappillil George includes ₹11.4m salary
• Total compensation is 622% above industry average
• Geojit Financial Services' total shareholder return over the past three years was 37% while its EPS grew by 5.4% over the past three years

Under the guidance of CEO Chenayappillil George, Geojit Financial Services Limited (NSE:GEOJITFSL) has performed reasonably well recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 12th of July. However, some shareholders may still want to keep CEO compensation within reason.

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 ₹24b, and reported total annual CEO compensation of ₹35m for the year to March 2024. Notably, that's an increase of 18% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at ₹11m.

For comparison, other companies in the Indian Capital Markets industry with market capitalizations ranging between ₹8.3b and ₹33b had a median total CEO compensation of ₹4.8m. This suggests that Chenayappillil George is paid more than the median for the industry. Moreover, Chenayappillil George also holds ₹4.8b 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.

Component	2024	2023	Proportion (2024)
Salary	₹11m	₹37m	33%
Other	₹23m		67%
Total Compensation	₹35m	₹29m	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. It's interesting to note that Geojit Financial Services allocates a smaller portion of compensation to salary in comparison 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 5.4% a year over the past three years. In the last year, its revenue is up 38%.

It's great to see that revenue growth is strong. With that in mind, the modestly improving EPS seems positive. We wouldn't say this is necessarily top notch growth, but it is certainly promising. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Geojit Financial Services Limited Been A Good Investment?

Most shareholders would probably be pleased with Geojit Financial Services Limited for providing a total return of 37% over three years. 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.

In Summary...

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. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are 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. That's why we did our research, and identified 3 warning signs for Geojit Financial Services (of which 1 is concerning!) that you should know about in order to have a holistic understanding of the stock.

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.

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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.

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