We Discuss Why Godawari Power & Ispat Limited's (NSE:GPIL) CEO May Deserve A Higher Pay Packet

Key Insights

• Godawari Power & Ispat to hold its Annual General Meeting on 21st of September
• Salary of ₹36.0m is part of CEO Bajrang Agrawal's total remuneration
• The overall pay is 39% below the industry average
• Over the past three years, Godawari Power & Ispat's EPS grew by 1.7% and over the past three years, the total shareholder return was 206%

The decent performance at Godawari Power & Ispat Limited (NSE:GPIL) recently will please most shareholders as they go into the AGM coming up on 21st of September. This would also be a chance for them to hear the board review the financial results, discuss future company strategy to further improve the business and vote on any resolutions such as executive remuneration. We have prepared some analysis below and we show why we think CEO compensation looks decent with even the possibility for a raise.

Check out our latest analysis for Godawari Power & Ispat

Comparing Godawari Power & Ispat Limited's CEO Compensation With The Industry

According to our data, Godawari Power & Ispat Limited has a market capitalization of ₹123b, and paid its CEO total annual compensation worth ₹36m over the year to March 2024. This was the same as last year. Notably, the salary of ₹36m is the entirety of the CEO compensation.

On examining similar-sized companies in the Indian Metals and Mining industry with market capitalizations between ₹84b and ₹268b, we discovered that the median CEO total compensation of that group was ₹59m. In other words, Godawari Power & Ispat pays its CEO lower than the industry median. What's more, Bajrang Agrawal holds ₹11b worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2024	2023	Proportion (2024)
Salary	₹36m	₹36m	100%
Other	-	-	-
Total Compensation	₹36m	₹36m	100%

On an industry level, roughly 100% of total compensation represents salary and 0.12587548% is other remuneration. On a company level, Godawari Power & Ispat prefers to reward its CEO through a salary, opting not to pay Bajrang Agrawal through non-salary benefits. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Godawari Power & Ispat Limited's Growth Numbers

Over the past three years, Godawari Power & Ispat Limited has seen its earnings per share (EPS) grow by 1.7% per year. Its revenue is up 1.1% over the last year.

We'd prefer higher revenue growth, but the modest improvement in EPS is good. Considering these factors we'd say performance has been pretty decent, though not amazing. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Godawari Power & Ispat Limited Been A Good Investment?

We think that the total shareholder return of 206%, over three years, would leave most Godawari Power & Ispat Limited shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

Godawari Power & Ispat rewards its CEO solely through a salary, ignoring non-salary benefits completely. While the company seems to be headed in the right direction performance-wise, there's always room for improvement. If it continues on the same road, shareholders might feel even more confident about their investment, and have little to no objections concerning CEO pay. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 1 warning sign for Godawari Power & Ispat that you should be aware of before investing.

Important note: Godawari Power & Ispat 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.