How Should Investors Feel About Gokul Agro Resources Limited's (NSE:GOKULAGRO) CEO Pay?

In 2015 Hiteshkumar Thakkar was appointed CEO of Gokul Agro Resources Limited (NSE:GOKULAGRO). First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.

See our latest analysis for Gokul Agro Resources

How Does Hiteshkumar Thakkar's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that Gokul Agro Resources Limited has a market cap of ₹1.4b, and reported total annual CEO compensation of ₹3.9m for the year to March 2019. It is worth noting that the CEO compensation consists almost entirely of the salary, worth ₹3.9m. We took a group of companies with market capitalizations below ₹15b, and calculated the median CEO total compensation to be ₹3.6m.

So Hiteshkumar Thakkar receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.

You can see, below, how CEO compensation at Gokul Agro Resources has changed over time.

Is Gokul Agro Resources Limited Growing?

Over the last three years Gokul Agro Resources Limited has grown its earnings per share (EPS) by an average of 6.5% per year (using a line of best fit). It achieved revenue growth of 8.7% over the last year.

I'd prefer higher revenue growth, but the modest improvement in EPS is good. So there are some positives here, but not enough to earn high praise. Although we don't have analyst forecasts you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Gokul Agro Resources Limited Been A Good Investment?

With a three year total loss of 62%, Gokul Agro Resources Limited would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.

In Summary...

Hiteshkumar Thakkar is paid around the same as most CEOs of similar size companies.

The per share growth could be better, in our view. And we think the shareholder returns - over three years - have been underwhelming. So it would take a bold person to suggest the pay is too modest. On another note, Gokul Agro Resources has 3 warning signs (and 1 which makes us a bit uncomfortable) we think you should know about.

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

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.

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