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.
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.
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.
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.
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.
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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.
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