Shareholders Will Probably Hold Off On Increasing Gulf Oil Lubricants India Limited's (NSE:GULFOILLUB) CEO Compensation For The Time Being

Key Insights

• Gulf Oil Lubricants India will host its Annual General Meeting on 30th of September
• Total pay for CEO Ravi Chawla includes ₹48.2m salary
• The overall pay is 245% above the industry average
• Over the past three years, Gulf Oil Lubricants India's EPS grew by 17% and over the past three years, the total shareholder return was 218%

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Under the guidance of CEO Ravi Chawla, Gulf Oil Lubricants India Limited (NSE:GULFOILLUB) has performed reasonably well 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 30th of September. However, some shareholders may still want to keep CEO compensation within reason.

See our latest analysis for Gulf Oil Lubricants India

Comparing Gulf Oil Lubricants India Limited's CEO Compensation With The Industry

Our data indicates that Gulf Oil Lubricants India Limited has a market capitalization of ₹60b, and total annual CEO compensation was reported as ₹109m for the year to March 2025. Notably, that's an increase of 20% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at ₹48m.

On examining similar-sized companies in the Indian Chemicals industry with market capitalizations between ₹35b and ₹142b, we discovered that the median CEO total compensation of that group was ₹32m. Accordingly, our analysis reveals that Gulf Oil Lubricants India Limited pays Ravi Chawla north of the industry median. Moreover, Ravi Chawla also holds ₹44m 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.

On an industry level, roughly 84% of total compensation represents salary and 16% is other remuneration. Gulf Oil Lubricants India 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.

A Look at Gulf Oil Lubricants India Limited's Growth Numbers

Over the past three years, Gulf Oil Lubricants India Limited has seen its earnings per share (EPS) grow by 17% per year. Its revenue is up 11% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Gulf Oil Lubricants India Limited Been A Good Investment?

We think that the total shareholder return of 218%, over three years, would leave most Gulf Oil Lubricants India Limited shareholders smiling. 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...

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 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 Gulf Oil Lubricants India that you should be aware of before investing.

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.