Here's Why Shareholders May Want To Be Cautious With Increasing Gandhi Special Tubes Limited's (NSE:GANDHITUBE) CEO Pay Packet

Key Insights

• Gandhi Special Tubes' Annual General Meeting to take place on 12th of August
• Salary of ₹12.0m is part of CEO Manhar Gandhi's total remuneration
• Total compensation is 853% above industry average
• Over the past three years, Gandhi Special Tubes' EPS grew by 18% and over the past three years, the total shareholder return was 82%

CEO Manhar Gandhi has done a decent job of delivering relatively good performance at Gandhi Special Tubes Limited (NSE:GANDHITUBE) recently. As shareholders go into the upcoming AGM on 12th of August, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still want to keep CEO compensation within reason.

See our latest analysis for Gandhi Special Tubes

Comparing Gandhi Special Tubes Limited's CEO Compensation With The Industry

Our data indicates that Gandhi Special Tubes Limited has a market capitalization of ₹10b, and total annual CEO compensation was reported as ₹32m for the year to March 2024. That's a modest increase of 3.8% on the prior year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at ₹12m.

For comparison, other companies in the Indian Metals and Mining industry with market capitalizations below ₹17b, reported a median total CEO compensation of ₹3.3m. This suggests that Manhar Gandhi is paid more than the median for the industry. Moreover, Manhar Gandhi also holds ₹1.6b worth of Gandhi Special Tubes stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2024	2023	Proportion (2024)
Salary	₹12m	₹9.8m	38%
Other	₹20m	₹21m	62%
Total Compensation	₹32m	₹31m	100%

Talking in terms of the industry, salary represents all of total compensation among the companies we analyzed, while other remuneration is, interestingly, completely ignored. Gandhi Special Tubes pays a modest slice of remuneration through salary, as compared to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Gandhi Special Tubes Limited's Growth

Over the past three years, Gandhi Special Tubes Limited has seen its earnings per share (EPS) grow by 18% per year. Its revenue is up 2.0% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Gandhi Special Tubes Limited Been A Good Investment?

Boasting a total shareholder return of 82% over three years, Gandhi Special Tubes Limited has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay 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.

So you may want to check if insiders are buying Gandhi Special Tubes shares with their own money (free access).

Important note: Gandhi Special Tubes 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com