Shareholders May Be More Conservative With Gulf Oil Lubricants India Limited's (NSE:GULFOILLUB) CEO Compensation For Now

Key Insights

• Gulf Oil Lubricants India will host its Annual General Meeting on 12th of September
• CEO Ravi Chawla's total compensation includes salary of ₹43.3m
• Total compensation is 151% above industry average
• Gulf Oil Lubricants India's total shareholder return over the past three years was 154% while its EPS grew by 16% over the past three years

CEO Ravi Chawla has done a decent job of delivering relatively good performance at Gulf Oil Lubricants India Limited (NSE:GULFOILLUB) recently. As shareholders go into the upcoming AGM on 12th of September, 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 Gulf Oil Lubricants India

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

At the time of writing, our data shows that Gulf Oil Lubricants India Limited has a market capitalization of ₹70b, and reported total annual CEO compensation of ₹91m for the year to March 2024. That's a notable increase of 34% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at ₹43m.

For comparison, other companies in the Indian Chemicals industry with market capitalizations ranging between ₹34b and ₹134b had a median total CEO compensation of ₹36m. This suggests that Ravi Chawla is paid more than the median for the industry. Moreover, Ravi Chawla also holds ₹176m worth of Gulf Oil Lubricants India 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	₹43m	₹39m	48%
Other	₹47m	₹29m	52%
Total Compensation	₹91m	₹68m	100%

Speaking on an industry level, nearly 88% of total compensation represents salary, while the remainder of 12% is other remuneration. It's interesting to note that Gulf Oil Lubricants India allocates a smaller portion of compensation to salary in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Gulf Oil Lubricants India Limited's Growth

Gulf Oil Lubricants India Limited's earnings per share (EPS) grew 16% per year over the last three years. In the last year, its revenue is up 9.0%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. 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 Gulf Oil Lubricants India Limited Been A Good Investment?

Most shareholders would probably be pleased with Gulf Oil Lubricants India Limited for providing a total return of 154% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

To Conclude...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed 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.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 1 warning sign for Gulf Oil Lubricants India that investors should think about before committing capital to this stock.

Important note: Gulf Oil Lubricants India 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.