Increases to Goa Carbon Limited's (NSE:GOACARBON) CEO Compensation Might Cool off for now

Key Insights

• Goa Carbon's Annual General Meeting to take place on 9th of September
• CEO Anupam Misra's total compensation includes salary of ₹11.0m
• The total compensation is 171% higher than the average for the industry
• Goa Carbon's EPS declined by 55% over the past three years while total shareholder return over the past three years was 12%

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Despite positive share price growth of 12% for Goa Carbon Limited (NSE:GOACARBON) over the last few years, earnings growth has been disappointing, which suggests something is amiss. These concerns will be at the front of shareholders' minds as they go into the AGM coming up on 9th of September. It would also be an opportunity for them to influence management through exercising their voting power on company resolutions, including CEO and executive remuneration, which could impact on firm performance in the future. From the data that we gathered, we think that shareholders should hold off on a raise on CEO compensation until performance starts to show some improvement.

View our latest analysis for Goa Carbon

Comparing Goa Carbon Limited's CEO Compensation With The Industry

Our data indicates that Goa Carbon Limited has a market capitalization of ₹4.2b, and total annual CEO compensation was reported as ₹12m for the year to March 2025. That's a fairly small increase of 6.6% over the previous year. Notably, the salary which is ₹11.0m, represents most of the total compensation being paid.

On comparing similar-sized companies in the Indian Metals and Mining industry with market capitalizations below ₹18b, we found that the median total CEO compensation was ₹4.5m. This suggests that Anupam Misra is paid more than the median for the industry.

Speaking on an industry level, all of total compensation represents salary, while non-salary remuneration is completely ignored. Our data reveals that Goa Carbon allocates salary more or less in line with the wider market. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at Goa Carbon Limited's Growth Numbers

Goa Carbon Limited has reduced its earnings per share by 55% a year over the last three years. It saw its revenue drop 28% over the last year.

Overall this is not a very positive result for shareholders. And the fact that revenue is down year on year arguably paints an ugly picture. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Goa Carbon Limited Been A Good Investment?

With a total shareholder return of 12% over three years, Goa Carbon Limited shareholders would, in general, be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

To Conclude...

While it's true that shareholders have owned decent returns, it's hard to overlook the lack of earnings growth and this makes us question whether these returns will continue. Shareholders should make the most of the coming opportunity to question the board on key concerns they may have and revisit their investment thesis with regards to the company.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We did our research and identified 2 warning signs (and 1 which is concerning) in Goa Carbon we think you should know about.

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.