We Discuss Why Gujarat Ambuja Exports Limited's (NSE:GAEL) CEO Compensation May Be Closely Reviewed

Key Insights

• Gujarat Ambuja Exports to hold its Annual General Meeting on 30th of August
• Total pay for CEO Manish Gupta includes ₹9.00m salary
• Total compensation is 1,962% above industry average
• Gujarat Ambuja Exports' three-year loss to shareholders was 29% while its EPS was down 21% over the past three years

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Shareholders will probably not be too impressed with the underwhelming results at Gujarat Ambuja Exports Limited (NSE:GAEL) recently. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 30th of August. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. We present the case why we think CEO compensation is out of sync with company performance.

Check out our latest analysis for Gujarat Ambuja Exports

How Does Total Compensation For Manish Gupta Compare With Other Companies In The Industry?

Our data indicates that Gujarat Ambuja Exports Limited has a market capitalization of ₹47b, and total annual CEO compensation was reported as ₹378m for the year to March 2025. That's slightly lower by 4.7% over the previous year. We think total compensation is more important but our data shows that the CEO salary is lower, at ₹9.0m.

For comparison, other companies in the Indian Food industry with market capitalizations ranging between ₹17b and ₹70b had a median total CEO compensation of ₹18m. This suggests that Manish Gupta is paid more than the median for the industry. Furthermore, Manish Gupta directly owns ₹29b worth of shares in the company, implying that they are deeply invested in the company's success.

Speaking on an industry level, all of total compensation represents salary, while non-salary remuneration is completely ignored. A high-salary is usually a no-brainer when it comes to attracting the best executives, but Gujarat Ambuja Exports paid Manish Gupta a nominal salary to the CEO over the past 12 months, instead focusing on non-salary compensation. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at Gujarat Ambuja Exports Limited's Growth Numbers

Over the last three years, Gujarat Ambuja Exports Limited has shrunk its earnings per share by 21% per year. The trailing twelve months of revenue was pretty much the same as the prior period.

Few shareholders would be pleased to read that EPS have declined. And the flat revenue hardly impresses. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Gujarat Ambuja Exports Limited Been A Good Investment?

Since shareholders would have lost about 29% over three years, some Gujarat Ambuja Exports Limited investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

Gujarat Ambuja Exports primarily uses non-salary benefits to reward its CEO. Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 1 warning sign for Gujarat Ambuja Exports that investors should think about before committing capital to this stock.

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. 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.