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

Key Insights

• GHCL will host its Annual General Meeting on 24th of July
• Salary of ₹35.7m is part of CEO Ravi Jalan's total remuneration
• The total compensation is 254% higher than the average for the industry
• GHCL's EPS grew by 9.2% over the past three years while total shareholder return over the past three years was 16%

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CEO Ravi Jalan has done a decent job of delivering relatively good performance at GHCL Limited (NSE:GHCL) recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 24th of July. However, some shareholders will still be cautious of paying the CEO excessively.

View our latest analysis for GHCL

How Does Total Compensation For Ravi Jalan Compare With Other Companies In The Industry?

At the time of writing, our data shows that GHCL Limited has a market capitalization of ₹62b, and reported total annual CEO compensation of ₹131m for the year to March 2025. That's mostly flat as compared to the prior year's compensation. While we always look at total compensation first, our analysis shows that the salary component is less, at ₹36m.

On comparing similar companies from the Indian Chemicals industry with market caps ranging from ₹34b to ₹138b, we found that the median CEO total compensation was ₹37m. Hence, we can conclude that Ravi Jalan is remunerated higher than the industry median. What's more, Ravi Jalan holds ₹274m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, roughly 85% of total compensation represents salary and 15% is other remuneration. GHCL sets aside a smaller share of compensation for salary, in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

GHCL Limited's Growth

GHCL Limited has seen its earnings per share (EPS) increase by 9.2% a year over the past three years. In the last year, its revenue is down 7.6%.

We would prefer it if there was revenue growth, but it is good to see a modest EPS growth at least. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has GHCL Limited Been A Good Investment?

With a total shareholder return of 16% over three years, GHCL Limited shareholders would, in general, be reasonably content. 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.

In Summary...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 1 warning sign for GHCL that investors should look into moving forward.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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.