Shareholders May Not Be So Generous With GTPL Hathway Limited's (NSE:GTPL) CEO Compensation And Here's Why

Key Insights

• GTPL Hathway will host its Annual General Meeting on 27th of September
• CEO Anirudhsinh Jadeja's total compensation includes salary of ₹40.1m
• The total compensation is 67% higher than the average for the industry
• Over the past three years, GTPL Hathway's EPS fell by 24% and over the past three years, the total loss to shareholders 19%

Shareholders of GTPL Hathway Limited (NSE:GTPL) will have been dismayed by the negative share price return over the last three years. Per share earnings growth is also poor, despite revenues growing. In light of this performance, shareholders will have a chance to question the board in the upcoming AGM on 27th of September, where they can impact on future company performance by voting on resolutions, including executive compensation. Here's why we think shareholders should hold off on a raise for the CEO at the moment.

Check out our latest analysis for GTPL Hathway

Comparing GTPL Hathway Limited's CEO Compensation With The Industry

Our data indicates that GTPL Hathway Limited has a market capitalization of ₹19b, and total annual CEO compensation was reported as ₹40m for the year to March 2024. Notably, that's an increase of 9.0% over the year before. It is worth noting that the CEO compensation consists entirely of the salary, worth ₹40m.

In comparison with other companies in the Indian Media industry with market capitalizations ranging from ₹8.4b to ₹33b, the reported median CEO total compensation was ₹24m. This suggests that Anirudhsinh Jadeja is paid more than the median for the industry. Furthermore, Anirudhsinh Jadeja directly owns ₹2.2b worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	₹40m	₹37m	100%
Other	-	-	-
Total Compensation	₹40m	₹37m	100%

Talking in terms of the industry, salary represented approximately 96% of total compensation out of all the companies we analyzed, while other remuneration made up 4% of the pie. Speaking on a company level, GTPL Hathway prefers to tread along a traditional path, disbursing all compensation through a salary. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

GTPL Hathway Limited's Growth

GTPL Hathway Limited has reduced its earnings per share by 24% a year over the last three years. It achieved revenue growth of 16% over the last year.

The decrease in EPS could be a concern for some investors. On the other hand, the strong revenue growth suggests the business is growing. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has GTPL Hathway Limited Been A Good Investment?

Given the total shareholder loss of 19% over three years, many shareholders in GTPL Hathway Limited are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

GTPL Hathway rewards its CEO solely through a salary, ignoring non-salary benefits completely. The returns to shareholders is disappointing along with lack of earnings growth, which goes some way in explaining the poor returns. In the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan is in line with their expectations.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 2 warning signs for GTPL Hathway that you should be aware of before investing.

Switching gears from GTPL Hathway, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.