We Think Shareholders Will Probably Be Generous With GTPL Hathway Limited's (NSE:GTPL) CEO Compensation

Simply Wall St
August 20, 2021
Source: Shutterstock

The performance at GTPL Hathway Limited (NSE:GTPL) has been quite strong recently and CEO Anirudhsinh Jadeja has played a role in it. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 27 August 2021. The focus will probably be on the future company strategy as shareholders cast their votes on resolutions such as executive remuneration and other matters. In light of the great performance, we discuss the case why we think CEO compensation is not excessive.

Check out our latest analysis for GTPL Hathway

How Does Total Compensation For Anirudhsinh Jadeja Compare With Other Companies In The Industry?

According to our data, GTPL Hathway Limited has a market capitalization of ₹25b, and paid its CEO total annual compensation worth ₹30m over the year to March 2021. Notably, that's an increase of 10% over the year before. It is worth noting that the CEO compensation consists entirely of the salary, worth ₹30m.

On examining similar-sized companies in the industry with market capitalizations between ₹15b and ₹59b, we discovered that the median CEO total compensation of that group was ₹41m. This suggests that GTPL Hathway remunerates its CEO largely in line with the industry average. Furthermore, Anirudhsinh Jadeja directly owns ₹2.9b worth of shares in the company, implying that they are deeply invested in the company's success.

Component20212020Proportion (2021)
Salary ₹30m ₹26m 100%
Other - ₹1.6m -
Total Compensation₹30m ₹28m100%

On an industry level, it's fascinating to see that all of total compensation represents salary and non-salary benefits do not factor into the equation at all. 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.

NSEI:GTPL CEO Compensation August 21st 2021

GTPL Hathway Limited's Growth

GTPL Hathway Limited's earnings per share (EPS) grew 49% per year over the last three years. In the last year, its revenue is up 6.8%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has GTPL Hathway Limited Been A Good Investment?

Boasting a total shareholder return of 178% over three years, GTPL Hathway Limited has done well by shareholders. 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...

GTPL Hathway rewards its CEO solely through a salary, ignoring non-salary benefits completely. Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 2 warning signs for GTPL Hathway that investors should be aware of in a dynamic business environment.

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.

If you decide to trade GTPL Hathway, use the lowest-cost* platform that is rated #1 Overall by Barron’s, Interactive Brokers. Trade stocks, options, futures, forex, bonds and funds on 135 markets, all from a single integrated account. Promoted

Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.

Make Confident Investment Decisions

Simply Wall St's Editorial Team provides unbiased, factual reporting on global stocks using in-depth fundamental analysis.
Find out more about our editorial guidelines and team.