Our Take On Gujarat Ambuja Exports' (NSE:GAEL) CEO Salary

The CEO of Gujarat Ambuja Exports Limited (NSE:GAEL) is Manish Vijay Gupta, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also assess whether Gujarat Ambuja Exports pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

Check out our latest analysis for Gujarat Ambuja Exports

Comparing Gujarat Ambuja Exports Limited's CEO Compensation With the industry

According to our data, Gujarat Ambuja Exports Limited has a market capitalization of ₹28b, and paid its CEO total annual compensation worth ₹203m over the year to March 2020. Notably, that's a decrease of 21% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at ₹8.4m.

On examining similar-sized companies in the industry with market capitalizations between ₹15b and ₹59b, we discovered that the median CEO total compensation of that group was ₹26m. Accordingly, our analysis reveals that Gujarat Ambuja Exports Limited pays Manish Vijay Gupta north of the industry median. What's more, Manish Vijay Gupta holds ₹11b 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. Investors may find it interesting that Gujarat Ambuja Exports paid a marginal salary to Manish Vijay Gupta, over the past year, focusing on non-salary compensation instead. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Gujarat Ambuja Exports Limited's Growth

Over the past three years, Gujarat Ambuja Exports Limited has seen its earnings per share (EPS) grow by 27% per year. In the last year, its revenue is down 15%.

Shareholders would be glad to know that the company has improved itself over the last few years. While it would be good to see revenue growth, profits matter more in the end. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Gujarat Ambuja Exports Limited Been A Good Investment?

Gujarat Ambuja Exports Limited has served shareholders reasonably well, with a total return of 24% over three years. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

To Conclude...

Gujarat Ambuja Exports prefers rewarding its CEO through non-salary benefits. As we noted earlier, Gujarat Ambuja Exports pays its CEO higher than the norm for similar-sized companies belonging to the same industry. However, the EPS growth over three years is certainly impressive. We also note that, over the same time frame, shareholder returns haven't been bad. While it may be worth researching further, we don't see a problem with the high CEO pay, given the good EPS growth.

So you may want to check if insiders are buying Gujarat Ambuja Exports shares with their own money (free access).

Important note: Gujarat Ambuja Exports 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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