Does Global Vectra Helicorp's (NSE:GLOBALVECT) CEO Salary Compare Well With The Performance Of The Company?

Anthony Baker became the CEO of Global Vectra Helicorp Limited (NSE:GLOBALVECT) in 2015, and we think it's a good time to look at 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.

Check out our latest analysis for Global Vectra Helicorp

How Does Total Compensation For Anthony Baker Compare With Other Companies In The Industry?

At the time of writing, our data shows that Global Vectra Helicorp Limited has a market capitalization of ₹773m, and reported total annual CEO compensation of ₹8.4m for the year to March 2020. That is, the compensation was roughly the same as last year. In particular, the salary of ₹6.44m, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar-sized companies in the industry with market capitalizations below ₹15b, we found that the median total CEO compensation was ₹8.4m. From this we gather that Anthony Baker is paid around the median for CEOs in the industry.

Speaking on an industry level, nearly 100% of total compensation represents salary, while the remainder of 0.1% is other remuneration. Global Vectra Helicorp sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Global Vectra Helicorp Limited's Growth Numbers

Over the last three years, Global Vectra Helicorp Limited has shrunk its earnings per share by 67% per year. It saw its revenue drop 28% over the last year.

The decline in EPS is a bit concerning. And the fact that revenue is down year on year arguably paints an ugly picture. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. 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 Global Vectra Helicorp Limited Been A Good Investment?

Since shareholders would have lost about 69% over three years, some Global Vectra Helicorp 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 touched on above, Global Vectra Helicorp Limited is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Meanwhile, EPS growth and shareholder returns have been in the red for the last three years. Considering overall performance, shareholders will likely hold off support for a raise until results improve.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. In our study, we found 3 warning signs for Global Vectra Helicorp you should be aware of, and 1 of them is concerning.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

When trading Global Vectra Helicorp or any other investment, use the platform considered by many to be the Professional's Gateway to the Worlds Market, Interactive Brokers. You get the lowest-cost* trading on stocks, options, futures, forex, bonds and funds worldwide 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 (at) simplywallst.com.