Globus Spirits Limited's (NSE:GLOBUSSPR) CEO Compensation Is Looking A Bit Stretched At The Moment

CEO Ajay Swarup has done a decent job of delivering relatively good performance at Globus Spirits Limited (NSE:GLOBUSSPR) recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 24 September 2022. However, some shareholders will still be cautious of paying the CEO excessively.

Check out our latest analysis for Globus Spirits

Comparing Globus Spirits Limited's CEO Compensation With The Industry

At the time of writing, our data shows that Globus Spirits Limited has a market capitalization of ₹25b, and reported total annual CEO compensation of ₹31m for the year to March 2022. We note that's an increase of 28% above last year. We note that the salary portion, which stands at ₹21.0m constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the industry with market capitalizations ranging from ₹16b to ₹64b, the reported median CEO total compensation was ₹5.5m. This suggests that Ajay Swarup is paid more than the median for the industry. Furthermore, Ajay Swarup directly owns ₹1.7b worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2022	2021	Proportion (2022)
Salary	₹21m	₹18m	68%
Other	₹9.8m	₹6.6m	32%
Total Compensation	₹31m	₹24m	100%

On an industry level, roughly 97% of total compensation represents salary and 3% is other remuneration. In Globus Spirits' case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Globus Spirits Limited's Growth

Globus Spirits Limited's earnings per share (EPS) grew 91% per year over the last three years. In the last year, its revenue is up 24%.

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. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Globus Spirits Limited Been A Good Investment?

We think that the total shareholder return of 570%, over three years, would leave most Globus Spirits Limited shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same 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. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

Whatever your view on compensation, you might want to check if insiders are buying or selling Globus Spirits shares (free trial).

Switching gears from Globus Spirits, 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.