Is Gulf Oil Lubricants India Limited’s (NSE:GULFOILLUB) CEO Paid Enough Relative To Peers?

Ravi Chawla became the CEO of Gulf Oil Lubricants India Limited (NSE:GULFOILLUB) in 2014. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.

View our latest analysis for Gulf Oil Lubricants India

How Does Ravi Chawla’s Compensation Compare With Similar Sized Companies?

Our data indicates that Gulf Oil Lubricants India Limited is worth ₹41b, and total annual CEO compensation is ₹40m. (This is based on the year to March 2018). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at ₹19m. We looked at a group of companies with market capitalizations from ₹14b to ₹55b, and the median CEO total compensation was ₹21m.

Thus we can conclude that Ravi Chawla receives more in total compensation than the median of a group of companies in the same market, and of similar size to Gulf Oil Lubricants India Limited. However, this doesn’t necessarily mean the pay is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.

You can see a visual representation of the CEO compensation at Gulf Oil Lubricants India, below.

NSEI:GULFOILLUB CEO Compensation, April 1st 2019
NSEI:GULFOILLUB CEO Compensation, April 1st 2019

Is Gulf Oil Lubricants India Limited Growing?

Gulf Oil Lubricants India Limited has increased its earnings per share (EPS) by an average of 20% a year, over the last three years (using a line of best fit). It achieved revenue growth of 27% over the last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. It could be important to check this free visual depiction of what analysts expect for the future.

Has Gulf Oil Lubricants India Limited Been A Good Investment?

Boasting a total shareholder return of 67% over three years, Gulf Oil Lubricants India 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…

We compared the total CEO remuneration paid by Gulf Oil Lubricants India Limited, and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.

However, the earnings per share growth over three years is certainly impressive. Even better, returns to shareholders have been plentiful, over the same time period. So, considering this good performance, the CEO compensation may be quite appropriate. So you may want to check if insiders are buying Gulf Oil Lubricants India shares with their own money (free access).

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

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

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. Thank you for reading.