We Discuss Why The CEO Of Gulshan Polyols Limited (NSE:GULPOLY) Is Due For A Pay Rise

The solid performance at Gulshan Polyols Limited (NSE:GULPOLY) has been impressive and shareholders will probably be pleased to know that CEO Ashwani Vats has delivered. At the upcoming AGM on 28 September 2022, they will get a chance to hear the board review the company results, discuss future strategy and cast their vote on any resolutions such as executive remuneration. We think the CEO has done a pretty decent job and probably deserves a well-earned pay rise.

See our latest analysis for Gulshan Polyols

How Does Total Compensation For Ashwani Vats Compare With Other Companies In The Industry?

According to our data, Gulshan Polyols Limited has a market capitalization of ₹14b, and paid its CEO total annual compensation worth ₹12m over the year to March 2022. Notably, that's an increase of 55% over the year before. Notably, the salary which is ₹9.52m, represents most of the total compensation being paid.

On comparing similar companies from the same industry with market caps ranging from ₹8.0b to ₹32b, we found that the median CEO total compensation was ₹18m. This suggests that Ashwani Vats is paid below the industry median. Furthermore, Ashwani Vats directly owns ₹16m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2022	2021	Proportion (2022)
Salary	₹9.5m	₹5.2m	79%
Other	₹2.5m	₹2.5m	21%
Total Compensation	₹12m	₹7.8m	100%

Speaking on an industry level, nearly 86% of total compensation represents salary, while the remainder of 14% is other remuneration. There isn't a significant difference between Gulshan Polyols and the broader market, in terms of salary allocation in the overall compensation package. 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 Gulshan Polyols Limited's Growth Numbers

Over the past three years, Gulshan Polyols Limited has seen its earnings per share (EPS) grow by 41% per year. Its revenue is up 28% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Gulshan Polyols Limited Been A Good Investment?

Boasting a total shareholder return of 457% over three years, Gulshan Polyols 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.

To Conclude...

Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. 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.

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 3 warning signs for Gulshan Polyols that you should be aware of before investing.

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.